Mumbai: Enthused by budgetary proposals to boost exports, the rupee on February 29 strengthened for the second day by rising 20 paise to end at 68.42 per dollar on sustained selling of the American currency by banks and exporters. Finance Minister Arun Jaitley on February 29 said that more support will be provided to exporters to give a boost to overseas shipments.
"The duty drawback scheme has been widened and deepened to include more products and countries. The government will continue to take measures to support the export sector," Jaitley said in his Budget speech for 2016-17.
Under the scheme, the government refunds duties on imported inputs for export items. The rupee resumed lower at 68.69 from last Friday's closing level of 68.62 at the Interbank Foreign Exchange (Forex) market here today and dropped further to 68.75 per dollar on initial month-end dollar demand from importers, mainly oil refiners.
However, it recovered from earlier losses and firmed up to 68.35 on selling of dollars from banks and exporters in view of lower dollar in the overseas market and recovery in the domestic equity, before closing at 68.42, showing a gain of 20 paise or 0.29 per cent. It has gained by 30 paise or 0.44 per cent in two days. The domestic currency hovered in a range of 68.35 and 68.75 per dollar during the day.
Meanwhile, the dollar index was up by 0.09 per cent against a basket of six currencies in late afternoon trade. The yen was stronger against rival currencies during the late Asian trade, as market sentiment was low after experts voiced concerns about rising downside risks and vulnerabilities in the global economy at their weekend Group of 20 meeting in Shanghai.
