Rupee firms up by 23 paise to 64.09 vs US dollar


MUMBAI: Extending gains for the second straight session, the rupee today rose by 23 paise to close at 64.09 a dollar on sustained selling of the American currency by exporters and banks.

The weakness in US dollar against some of its key rivals, including Japanese yen, also supported the rupee’s upmove.

The American currency hit a five-month low against the yen after Japan’s economy recorded its longest growth streak in 28 years.

Besides, robust macro-economic indicators — industrial output growth of 7.1 per cent in December and marginally lower retail inflation at 5.07 per cent — too helped in boosting sentiment.

Forex market was closed yesterday for a public holiday.

On Monday, the rupee had ended 8 paise higher to end at 64.32 against the dollar.

The domestic currency has gained 31 paise in last two sessions.

In cross-currency trades, the rupee firmed up against the pound sterling to end at 88.76 per pound from 89.24, and also strengthened against the euro to close at 79.13

It, however, weakened against the Japanese yen to close at 59.66 per 100 yens from 59.27 earlier.

The Reserve Bank of India today fixed the reference rate of the rupee at 64.1259 against the US dollar and 79.3879 for the euro.

Government bonds (G-Secs) gained following good demand from corporates and banks, while, the overnight call money rates turned lower due to lack of demand from borrowing banks amid comfortable liquidity in the banking system.

Meanwhile, market benchmark Sensex succumbed to fag-end profit-booking to end 144 points lower at 34,156 today after banking stocks tumbled on RBI’s new norms for recognising stressed assets.

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