Rupee up on dollar inflows; stocks; TB rates edge up

Thursday, 16 February 2012 00:01 - - {{hitsCtrl.values.hits}}

The Rupee hit its all-time lowest level against the dollar during trading but stock- and bond-related inflows boosted it before the close, dealers said.

The currency has been volatile since the central bank on Feb. 9 stopped intervening in the foreign-exchange market to defend a specific level. The rupee closed at 119.30/60 to the dollar after plummeting to 120.90 during trading, compared with Tuesday’s close of 120.10/20.

The Central Bank on Tuesday said the rupee volatility was because of hedging by importers and it expects the currency to recover after the long-overdue correction.

The main share index edged up 0.28 percent or 13.84 points to 5023.80 points from its lowest since Aug. 8, 2010.

But the index was still in the oversold region on Wednesday with the 14-day Relative Strength Index at 17.258, well below the lower neutral range of 30, Reuters data showed. It is the worst performer among Asian markets with a 17.30 percent loss so far this year.

The day’s turnover was 1.42 billion rupees. Last year’s average turnover was 2.3 billion. The day’s volume was 71.42 million shares compared to last year’s record daily average of 102.7 million.

The benchmark 91-day t-bill rate rose by 7 basis points to 9.31 percent at an auction on Wednesday.