Indian rupee reversed its gains and closed flat at 67.06 level against the US Dollar at the Interbank Foreign Exchange (Forex) market ahead of a speech by the US Federal Reserve Chair Janet Yellen that will give indication about the US rate hikes going forward. The local currency had opened at 67.01. It had closed at 67.05 level on Thursday. Earlier, the rupee had opened with gains of 4 paise at 67.01 against US dollar following selling of American currency by banks and exporters amid firm domestic markets. Domestic equity markets fell on the first session of the new F&O series as investors remained cautious ahead of Yellen’s speech. Sensex slipped 53.66 points to end at 27,782.25, while Nifty decline 19.65 points to close at 8,572.55.
“Indian Rupee continues to be rangebound as it is awaiting US Federal Reserve chair Janet Yellen’s comments on interst rates. RBI continued to intervene because INR has become overvalued compared to Yuan. Near term-range remains 66:80-67:30, ” Anindya Banerjee, currency analyst, Kotak Securities said.
Dollar also remained weak against other emerging currencies. Investors are eyeing US Federal Reserve chair Janet Yellne’s speech at the central bank heads conference where she is expected to give cues on further rate hike.
According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net buyer of Rs 835.00 crore in index futures and options segments, as per Thursday’s data, August 25, 2016.
FIIs were net buyers of index futures to the tune of Rs 942.31 crore and net sellers of index options worth Rs 107.32 crore. In the stock segment, FII’s were net sellers of stock futures worth Rs 1563.81 crore, while they bought stock options worth Rs 104.82 crore.