Domestic currency gained for the second day on Thursday and closed at one-week high of 62.07 against the dollar, up 37 paise as the RBI eased swap norms for banks borrowing funds overseas and exporters sold the US currency.
Support for the rupee also came from capital inflows on the back of a recovery in local equities. The gains were capped to some extent by a firm US currency overseas.
At the interbank foreign exchange market, the rupee opened at 62.20 a dollar from the previous close of 62.44 and fell to a low of 62.38 on early hesitancy in local stocks.
It bounced back to breach the 62 mark and reach a high of 61.98 before ending at 62.07, up 37 paise or 0.59 per cent. Rupee had gained 31 paise on Wednesday. It closed at 61.77 on September 19.
“Rupee had started the session on a stronger note as all the major Asian currencies were seen trading positive against the US dollar,” said Abhishek Goenka, CEO of India Forex Advisors. “Continued selling by exporters helped the rupee to post gains.”
Meanwhile, Sensex on Thursday ended 37.61 points higher at 19,893.85 on the back of gains in ITC, HDFC, Sun Pharma and BHEl shares amid investors squaring off their pending positions on expiry of monthly derivatives.