Mumbai: Snapping its two-day losing streak, the rupee today recovered 26 paise to end at 62.41 against the American currency on fresh selling of dollars by banks and exporters amid weakness in the greenback overseas.
The rupee resumed lower at 62.80 as against the yesterday's closing level of 62.67 on initial dollar demand from banks and importers and it moved further down to 62.81 per dollar.
However, it recovered from initial losses and firmed up to 62.39 on fresh selling of dollars by exporters before finishing at 62.41 per dollar, showing a gain of 26 paise or 0.41 per cent from its previous close.
The rupee had dropped by 41 paise or 0.66 per cent in last two days. The domestic currency moved in a range of 62.39-62.81 during the day. In New York market, the dollar lost ground against yen on Thursday, but traded higher against the euro after falling for most of the past week.
However, in London, the US dollar was higher against most major rivals today, ahead of an update on US gross domestic product in the fourth quarter and Federal Reserve's Chairwoman Janet Yellen speech on monetary policy. Oil prices fell in Asia on Friday, cutting short a rally as investors weighed the potential for disruptions in Middle-East supplies caused by the Yemen crisis and a global crude glut, analysts said.
The US benchmark West Texas Intermediate for May delivery fell 83 cents to USD 50.60 and Brent crude for May eased 75 cents to USD 58.44 in late-morning trade.
Meanwhile, Foreign Portfolio Investors turned sellers and offloaded shares worth Rs 521.23 crore yesterday, as per provisional data from stock exchanges.
The rupee recovered against the pound to 92.97 as compared with the previous close of 93.64. The currency also bounced back against the euro to 67.74 from 68.91. It also ended higher against the 100 Japanese yen to 52.32 from 52.80 on Thursday.
"Rupee traded strong for the day on fresh selling of dollars by exporters and banks due to weakness in the US currency in overseas markets," Pramit Brahmbhatt CEO Veracity Group said. The trading range for the Spot USD/INR pair is expected to be within 62.00-62.80, he added.
Meanwhile, the forward premia moved down further on sustained receipts by exporters. The benchmark six-month premium payable in August moved down further to 213-1/2-215-1/2 paise from 215-217 paise on Thursday.
Forward contracts maturing in February 2016 also dropped further to 437-1/2-439-1/2 paise from 443-445 paise earlier. The Reserve Bank of India fixed the reference rate for dollar at 62.61 for euro at 68.14.
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