Rupee gains 53 paise vs dollar

The rupee on Tuesday reversed its four-day string of losses by gaining 53 paise to close at 55.39 as dollar supply outstripped demand in view of the US currency’s weakness overseas as EU leaders agreed on terms for a bailout of Spanish banks. The rupee resumed slightly higher at 55.90 per dollar as against Monday’s closing level of 55.92 per dollar at the Interbank Foreign Exchange (Forex) market on weak Asian markets after Chinese import growth slowed in June. However, the rupee changed track and shot up to day’s high of 55.33 per dollar in tune with the surge in equity markets triggered by Eurozone finance ministers ratifying a deal to aid ailing Spanish banks. The dollar’s weakness against the 17-nation euro, which steadied at $1.2313 a day after striking its lowest point in two years, boosted the sentiment in favour of the rupee. Foreign Institutional Investors (FIIs) who bought stocks worth Rs 606 crore today, as per provisional data, also supported the rupee’s rise as the currency ended at 55.39, clocking a gain of 53 paise or nearly 1 per cent. Forex dealers said banks and exporters sold dollars after it weakened in international markets. From gulftoday