Re gains 18ps to close at 83.11/$

Mumbai: The rupee rallied for the fourth consecutive trading session on Friday and appreciated by 18paise to settle at 83.11 against the US dollar on fresh foreign fund inflows and suspected intervention by the RBI. Forex traders attributed the rally to Rs2.11 lakh crore record dividend by the RBI to the government for the fiscal ended March 31. It was more than double the budgeted expectation, helping shore up revenue ahead of a new government taking office.

At the interbank foreign exchange, the domestic unit opened at 83.26 and moved in the range of 83.03 and 83.26 against the greenback during the session. The local unit finally settled at 83.11 against the dollar, registering a rise of 18paise from its previous close. In the last four trading sessions the local unit has added 39paise against the American currency. The forex market was closed on Thursday on account of ‘Buddha Purnima’.

On Wednesday, the rupee appreciated by 2paise to settle at 83.29 against the US dollar. “The Indian rupee gained on suspected intervention by the Reserve Bank of India (RBI). The RBI’s Rs2.11 lakh crore dividend to the government also boosted market sentiments. “Fresh FII inflows and a decline in crude oil prices also supported the rupee. The US dollar strengthened as markets trimmed rate cut bets amid hawkish US data and hawkish Federal Open Market Committee (FOMC) meeting minutes,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.