Mumbai, Sep 8 (IANS) A global rally in the world currency markets and cooling crude oil prices buoyed the Indian rupee to gain 27 paise against the greenback on Tuesday.
The Indian rupee closed at 66.55 to a dollar — a gain of 27 paise from its previous close of 66.82 to a greenback. The rupee had touched an intra-day weakest point of 66.90.
“The rupee gained on the back of a rally in the global currencies market against the dollar. Most of the currencies are either a quarter or half a percent up against the dollar,” Anindya Banerjee, associate vice president for currency derivatives with Kotak Securities explained to IANS.
The gains comes a day after the rupee fell to its lowest levels against the US dollar in over two years.
On Monday, the Indian currency closed at 66.82 to a dollar, down 36 paise from its previous close of 66.46 on Friday (September 4, 2015). The rupee had touched an intra-day high of 66.86.
The rupee had last breached the 66.80-level to a greenback on September 4, 2013.
The Indian currency (on Monday) had come in for a beating as frantic dollar-buying in China devalued the off-shore yuan and other Asian currencies, including the rupee.
The volatility started after reports from China suggested that the central bank there was planning to impose stringent regulations on foreign exchange purchases from October to curb speculation and volatility.
Interestingly, the Chinese yuan was two percent weaker in off-shore markets than domestically.
Even the lower crude oil prices and the gains in the equity markets also support the rupees strengthening position.
The international crude oil price of Indian Basket stood at $46.69 per barrel (on Monday), lower than the price of $48.16 per barrel on September 4.
The barometer of the Indian equity markets — the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) gained 424.06 points or 1.70 percent from its previous day’s close at 24,893.81 points.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) too made gains during the day’s trade. It ended higher by 129.45 points or 1.71 percent at 7,688.25 points.