Forex: Suspected intervention by the apex bank at the lower level of 61.74 -five month low- (Intra-day), the Indian rupee managed to land in positive terrain, up by a mere three paise to end the week at 61.15 against the Greenback. Foreign funds inflow in local equities and fresh dollar selling by exporters also helped the rupee recovery.
A firm dollar overseas, on weekly basis, limited the rupee rise. On first two days of the week, the rupee saw appreciation in line with strong domestic equities but on Wednesday it plunged by 65 paise in its biggest single-day drop in over six months hit by spike in dollar demand and negatives cues from local stocks. Continued strength in US economy lifted the American dollar after data on Tuesday showed US services sector activity hit an 8-1/2 year high last month and June factory orders surged. This affected the rupee sentiment, say dealers.
At the Interbank Foreign Exchange (Forex) market, the local currency commenced strong at 60.90 a dollar from last weekend's close of 61.18 and improved further to a high of 60.69 on the back of strong equities and dollar selling by exporters and some banks. However, it later touched a low of 61.74 -five-month low- on rising global worries before bouncing back on suspected intrusion by the Reserve Bank of India (RBI) and USD demand from importers on fears of rise in global oil prices after US President Barack Obama authorised targeted air strikes in Northern Iraq amid concerns that the Ukraine crisis could escalate.
The rupee later finished the week at 61.15, showing a rise of three paise or 0.05 pct. Last week, it had tumbled by 108 paise or 1.80 pct.
