The Indian rupee recovered but still ended lower for the third straight day against the dollar, this time by 13 paise at 47.20/21.
The Indian rupee on Thursday recovered but still ended lower for the third straight day against the dollar, this time by 13 paise at 47.20/21, despite the late rally in bourses and the weakness of the US currency in Asian markets.
In volatile trade at the Interbank Foreign Exchange (Forex) market, the local unit resumed lower at 47.27/28 a dollar from its previous close of 47.07/08 and later moved down further to a low of 47.40 per dollar.
Foreign dealers attributed the early sharp fall in the rupee to sliding equity markets after a five-day smart rally and a stronger dollar overseas, which initially weighed on the rupee.
However, the Indian benchmark Sensex recouped sharply and went up by nearly 138 points or 0.93 per cent on the back of the UPA government's reforms agenda, which in turn helped the rupee recovery.
Later, it touched a high of 47.03 before ending at 47.20/21 a dollar.
Contrary to local sentiment, Asian indices ended in the red while European markets resumed better on Thursday.
Foreign institutional investors too slowed their activity in the last two trading sessions in the equity markets while global crude oil was quoting over USD 67 a barrel in Asian trade on Thursday.
Meanwhile, the Reserve Bank of India (RBI) fixed the reference rate for the US dollar at Rs 47.16 and for the euro at Rs 66.97.
Rupee premiums on the forward dollar ended further lower on sustained receiving from exporters.
The benchmark six-month forward dollar premium payable in
November ended at 62-1/2-64 paise, down from 68-70 paise on
Wednesday, and the far-forwards maturing in May also finished lower at 109-111 paise from 116-118 paise previously.
In cross-currency trade, the Indian rupee recovered against the pound sterling while improved further against the euro and the Japanese yen.
The domestic currency rebounded against the pound sterling to end at Rs 77.32/34 from its previous close of Rs 77.59/61 while inched up against the euro to Rs 66.78/80 previously.
It also strengthened against the Japanese yen to finish the day at Rs 48.88/90 per 100 yen from last close of Rs 49.07/09.
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