Rupee surges by 21 paise at 63.39 against dollar

Mumbai: Snapping its two-session falling streak, the rupee on Thursday jumped by 21 paise at 63.39 -- its highest closing in more than two months -- against the US dollar on heavy selling of the greenbank by exporters.

However, the American currency's firming trend in overseas markets as well as sluggishness in local equity markets, limited the gains, forex dealers said.

The domestic unit resumed the day on a firm note at 63.54 against Wednesday's close of 63.60 at the Interbank Foreign Exchange (FOREX) market, recovering from overnight fall, amidst global currency volatility in the wake of crash in Chinese stock markets.

It gained further strength on sustained dollar selling and managed to close at the day's high of 63.39, showcasing a smart gain of 21 paise, or 0.33 per cent, a level not seen since April 30 this year.

The rupee briefly hit an intra-day low of 63.57. The domestic currency had lost 20 paise in last two trading sessions to touch one-week low.

On the global front, the dollar was trading firmly higher against a basket of major currencies on expectations of fresh reform proposals from Greece as well as some stability in financial markets worldwide.

The US dollar index was up by 0.16 per cent at 96.53. Meanwhile, the benchmark BSE Sensex fell by 114.06 points to settle at 27,573.66.

The trading range for the Spot USD/INR pair is expected to be within 63.00 to 63.80.

In the forward market, the premium for dollar dropped owing to fresh receipts by exporters.

The benchmark six-month premium payable in December fell to 211.5-213.2 paise as compared to 215-217 paise previously. Far-forward contracts maturing in June, 2016 declined to 433-435 paise from 436-438 paise.

The RBI fixed the reference rate for the dollar at 63.5065 and for the euro at 70.4986.

The rupee strengthened further against the pound sterling to 97.58 as compared to 97.73 and also firmed up against the Japanese currency to 52.16 per 100 yen as against 52.27 on Wednesday.

However, the domestic unit weakened further to 70.06 per euro from 70.01 in the previous session.