Rupee Gains, A Day After Hitting 80 Per Dollar For The First Time Ever

The rupee gained further ground early on Wednesday, tracking a broader global risk assets' rally after the currency recovered following a breach of the key 80 per dollar mark for the first time ever on Tuesday and stalled seven straight sessions of losses.

Bloomberg quoted the rupee last changing hands at 79.9413 against the dollar after opening at 79.9187 and trading in a range of 79.9175 to 79.9450 in early exchanges. 

In the previous session, after falling to a new all-time intra-day low of 80.0600 per dollar, the Indian currency recovered and gained to close at 79.9487 as the Reserve Bank of India intervened in the forex market to help the rupee steady.

PTI reported the rupee gained two paise to 79.94 against the US dollar in early trade after closing at 79.92 on Tuesday.

But Reuters reported the Indian rupee treaded water in morning trade on Wednesday as gains in the domestic share market and slight falls in global crude oil prices failed to wipe out concerns around a global dollar shortage.

The partially convertible rupee was trading at 79.9450 per dollar little changed from its close of 79.94 on Tuesday when it had hit a record low of 80.0650, said Reuters.

Asian currencies were trading mixed against the dollar while Indian share markets were up 1.2 per cent.

The US dollar lost steam and the euro breathed a sigh of relief and extended its overnight bounce on relief Europe might be able to avoid the worst fears concerning energy shortages.

The euro was up nearly 0.2 per cent in the early Asia trade to $1.0239, having posted its strongest daily gain in a month of 0.75 per cent overnight.

The euro has lost about 2.3 per cent since the beginning of July, and broke parity for the first time in two decades last week following a red-hot US inflation print and fears about a sharp economic downturn in the eurozone.

Other major currencies similarly rallied on the back of the weakening greenback, and as central banks around the world become more hawkish in their efforts to tame soaring inflation.

The dollar index measure against a basket of key currencies was down 0.08 per cent to 106.58, well off its two-decade peak of 109.29 last week.

That and a fall in oil prices also \helped the rupee recover a touch after the recent rout.

Oil prices fell slightly in early Asian trade, pressured by global central bank efforts to tame inflation and ahead of expected builds in US crude inventories as product demand weakens