Rupee closes up 57 paise to 3-week high of 67.85

The rupee on Tuesday logged this year's biggest single day gain of 57 paise to close at a nearly three-week high of 67.85 against the American currency on fresh selling of dollars by banks and exporters in view of sharp recovery in the domestic equity market.

Weakness of dollar in the overseas market also boosted the rupee value against the dollar, a forex dealer said. The rupee resumed higher at 68.27 from yesterday's closing level of 68.42 at the Interbank Foreign Exchange Market (Forex) here today and shot up further to close at 67.85 on sustained selling of dollars, disclosing a gain of 57 paise or 0.83%.

It has gained by 87 paise or 1.27% in three days. It hovered in a range of 67.85 and 68.36 per dollar during the day. Meanwhile, the dollar index was up by 0.18% against a basket of six currencies in late afternoon trade.

The yen was stronger against rival currencies in Asia trade on Tuesday, hitting a fresh three-year high against the euro, as investors sought safety following downbeat economic reports from the eurozone and the US.

Meanwhile, the benchmark BSE Sensex recovered sharply by 777.35 points or 3.38% to finish at 23,779.35. Pramit Brahmbhatt of Veracity Financial Services said, "As expected the rupee opened on a stronger note and continued to trade with positive bias. Post budget, we witnessed the rupee trading with positive bias and with a smart gain.

"Taking cues from domestic equity market the rupee started trading post 68 levels. In domestic equity market, we saw Nifty gaining 235 points. To end the day, the rupee closed with a gain of 57 paise at 67.85 level."

Trading range for spot USD/INR pair is expected to be within 67.50 to 68.20 levels.