The rupee rose to nearly 10- month high of 59.51 in a volatile session on Monday but ended one paise down at 60.05 on late demand for the dollar.
At the Interbank Foreign Exchange ( Forex) Market, the rupee resumed higher 59.98 as against the last weekend's level 60.04. It firmed up further 59.51 on initial selling of dollars by banks and exporters on the back of sustained foreign capital inflow into domestic equity market.
There was buoyancy in the stock markets ahead of exit polls due later on Monday. The rupee had strengthened to 59.45 in intraday trade on July 29, 2013. However, the rupee failed to maintain initial gains and closed marginally lower at 60.05 registering a loss of one paise. It moved in a range of 59.51 and 60.12 during the day.
Banks and exporters initially preferred to reduce their dollar position in view of persistent foreign capital inflow into the equity market.
The USD/ INR pair, however, witnessed recovery with rumours that the Reserve Bank of India ( RBI) was buying dollars, said Admisi Forex India in a report.
Pramit Brahmbhatt, chief executive, Veracity Group, said, "Rupee continued to trade range- bound to slightly strong on the expectation that BJP will be on the winning side in Lok Sabha polls. Later today, exit polls will show results which will give the markets further direction." Meanwhile, premium for forward dollar eased on fresh receipts by exporters.
The benchmark six- month premium payable in October softened to 228-230 paise from 228.5- 230.5 paise. Far forward contracts maturing in April, 2015 also finished slightly lower at 466- 468 paise from 466.5- 468.5 paise.
RBI fixed the reference rate for dollar at 59.7290 and for the euro at 82.2235. The rupee fell back against the pound to end at 101.39 from 101.33 previously while remained firm against the euro to 82.62 as compared to 82.77. However, it firmed up against the Japanese yen to finish at 58.91 per 100 yen from last weekend's close of 59.04.
