The rupee resumed lower at 65.08 per dollar as against last closing level of 65.04 at the Interbank Forex Market.
The rupee opened higher by 7 paise at 64.95 as against yesterday's level of 65.02 at the interbank forex market (Forex) market.
In the reporting month, the central bank had bought USD 5.02 billion while it sold USD 1.486 billion in the spot market, according to the central bank data.
Keeping its bullish wave intact, the rupee today soared to a near 20-month high of 64.52, firming up by another 35 paise against the US dollar on massive unwinding of the American currency by exporters amid buoyant growth outlook by the Reserve Bank.
Silver followed suit and recovered to close higher on increased offtake by industrial units and coin makers. In the global market, the precious metal once again topped the USD 1,100 an ounce mark.
The market participants will keenly await the Reserve Bank of India (RBI) policy announcement tomorrow and we expect trade to be rangebound ahead of the RBI meet, says Agam Gupta of Standard Chartered.
However, silver eased Rs 325 to Rs 35,250 per kg due to reduced offtake by industrial units and coin makers. Bullion traders said emergence of buying by jewellers and retailers at the existing levels to meet wedding season demand mainly led to recovery in gold prices.
Silver followed suit and lost another Rs 450 at Rs 33,750 per kg. Traders said weakening global trend amid speculation that the Federal Reserve will raise interest rates as early as September kept pressure on the precious metal.
Forex market participants will keep a close eye on the equity market and the ongoing Parliament session, says Agam Gupta of Standarad Chartered.
The forex market in India is mostly dominated by offline players which leads to lack of uniformity in rates. In an attempt to ease this task, 29 year old Nitin Motwani started Bookmyforex.com, an online currency exchange marketplace.
Everyone knows that CAD and FII exits are the starting points for triggers in the forex markets. This is also the time when importers start to panic.
The rupee fell sharply by 90 paise to 66.90 against the dollar in the late morning trade on the back of persistent dollar demand from banks and importers.
Forex experts blame the overall weak sentiment for the currency‘s decline. Agam Gupta, MD of FI trading at Standard Chartered Bank says that the rupee will continue to be weak if the sentiment does not improve and inflows start coming in.
The rupee today recovered from all-time closing low, adding 42 paise to end at 60.88 against the dollar amid expectations the government would announce fresh steps to support the local currency.
The rupee closed 37 paise lower to Rs 59.41/USD ahead of the crucial first quarter policy review meet of the Reserve Bank of India (RBI) on Tuesday.
The embattled currency fell close to where it had been before a dramatic rescue mission by the RBI late on Monday, which sent bond yields surging and crimped the growth outlook for Asia's third largest economy
RBI last night announced a slew of measures like raising cost of borrowing by banks by 2 percent to 10.25 percent and announcing sale of bonds worth Rs 12,000 crore through open market operations to suck liquidity to check rupee slid, which had earlier in the month touched a all low of 61.21 to a dollar.
The rupee today closed two paise higher at 59.66/USD. It moved in a range of 59.45/USD to 59.79/USD on the back of strength in local equities and selling of US currency by exporters.
The Indian rupee on Wednesday (June 12) rose by 1.03 percent or 60 paisa to close the day's trading at 57.79 against the US dollar. This was the first appreciation after consecutive declines since June 04. It hit intraday low at 58.38 and a high of 57.72.
The rupee yesterday hit a life-time low of 58.98 against dollar but erased a major part of losses to close at 58.39 after the RBI possibly having intervened in the forex market to stem the slide.
The Reserve Bank can buy USD 9 billion according to the balance of payments estimates and after assuming the Brent crude to be at USD 110 a barrel.
Reserve Bank of India Governor D Subbarao believes a central bank should intervene in the forex market "only to manage economic stability disruptions".
Reserve Bank will intervene in the forex market only to curb excessive volatility in exchange rate but stated there is no target set for rupee, deputy governor Subir Gokarn said here today.
The rupee slumped to fresh record low of 57.92 after RBI measures to stem the currency slide failed to enthuse investors but it managed to recover some ground and closed 14 paise higher at 57.01 in a day of huge volatility.
Rajeev Malik of CLSA told CNBC-TV18 that he doesn’t expect an explicit mention of a rate hike pause by RBI today. The probability of a rate cut today is very marginal, he says. "RBI still holds that CRR is a monetary tool and using that can send a wrong signal to the market," Malik says.