Rupee rules at one-month high; up 30 paise vs Dollar

The rupee continued to rule at a one-month high, firming up another 30 paise to 61.75 against the dollar on Thursday, after exit polls predicted a strong showing by the BJP in the recently concluded assembly elections.

The US currency also advanced as dollar supplies improved on overseas inflows into local stocks, including the Power Grid Corp follow-on offer, and sales by banks and exporters amid a strong local equity market.

The rupee resumed higher at 61.75 from the previous close of 62.05 per dollar at the interbank foreign exchange market and firmed up further to 61.53. After hovering in a range of 61.53 to 61.90, it ended at 61.75, a gain of 30 paise or 0.48 per cent. This is the highest level since November 5.

The rupee opened strong on Thursday, tracking exit poll results which favoured the BJP. Investors feel if the BJP comes to power, it will help the markets, an analyst said. Inflows to the tune of $ 250-300 million for Power Grid shares also helped the rupee, the analyst said.

The Power Grid follow-on public offer was subscribed 4.77 times on the third day on Thursday.

Overseas investors bought a net Rs 52.11 crore of shares yesterday, according to provisional stock exchange data.

The 30-share benchmark Sensex rose 249.10 points, or 1.2 per cent, to finish at 20,957.81.

“Taking cues from this, rupee appreciated more than 50 paise during the day and closed on a positive note,” said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).