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PTI
Mumbai
The Inidian rupee on Friday staged a resounding comeback after a brief overnight setback and ended higher by a whopping 24 paise at 66.61 on fresh dollar unwinding from banks and exporters.
The domestic currency and financial markets showed remarkable resilience and stability a day after the massive plunge following the news of surgical strikes by India on terror launch pads across LoC.
The rupee had suffered its biggest single-day fall in three months on Thursday. Domestic stocks also ended in a positive zone despite concern of global financial contagion from Deutsche Bank's woes.
Forex dealers said apart from selling of the American currency by exporters and banks, expectations of strong capital inflows coming into the country in the long-run due to strong economic fundamentals largely supported the rupee.
Though active trading was held in check due to simmering tensions in the aftermath of 'surgical strikes' alongside RBI's fourth bi-monthly policy statement scheduled to be announced on October 4.
Despite a flat start at the Interbank Foreign Exchange (Forex) market, the home currency staged a strong rebound to hit a fresh intra-day high of 66.57 before ending at 66.61, showing a solid gain of 24 paise, or 0.36 percent. It briefly touched a low of 66.86 in early trade.
The newly constituted six-member Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel will hold its first meeting on October 3 and 4 to decided on key interest rate.
"FII inflow is likely to be robust in the medium to long-term due to country's strong macroeconomic fundamentals aided by good monsoon and better-than-expected corporate earnings," a forex dealer said.
Meanwhile, despite lower global cues, the S&P BSE benchmark Sensex bounced back by 38 points to end at 27,865.96 on bargain hunting after suffering steep losses on Thursday.
The Sensex resumed lower at 27,807.82 and moved in a range of 27,955.21 and 27,716.78 before ending at 27,865.96, showing a gain of 38.43 points or 0.14 percent. Th sensex had dropped by 465.28 points or 1.64 percent on Thursday. The NSE 50-share Nifty bounced back by 29.90 points or 0.35 per cent to close at 8,621.15. The Nifty had dropped by 153.90 points or 1.76 percent on Thursday.
