1. Indian rupee wipes off initial losses, closes at 66.96 level against US dollar

Indian rupee wipes off initial losses, closes at 66.96 level against US dollar

Indian rupee that had opened weak on Wednesday closed with gains of 7 paise at 66.96 against the US dollar at the Interbank Foreign Exchange market following firm domestic markets.

By: | Updated: August 31, 2016 6:07 PM
Indian rupee vs US dollar Indian rupee that had opened weak on Wednesday closed with gains of 7 paise at 66.96 against the US dollar at the Interbank Foreign Exchange market following firm domestic markets.

Indian rupee that opened weak on Wednesday closed with gains of 7 paise at 66.96 against the US dollar at the Interbank Foreign Exchange market following firm domestic markets. The local currency had opened weak against the dollar and depreciated by 6 paise at 67.09 against the US dollar as demand for the American currency increased among banks and importers. The rupee had closed at 67.03 on Tuesday. Domestic equity markets surged for the third straight session with the NSE Nifty reclaiming the 8,800 level on widespread gains amid sustained foreign fund inflows ahead of key macroeconomic data. Sensex jumped 109.16 points to close at 28,452.17, while NSE Nifty closed at 8,786.20 by gaining 41.85 points.

The local currency hovered in the range of 66.9613 – 67.0925.

Dollar strengthened against other emerging currencies on strong expectations that US Federal Reserve will raise interest rates this year.

“Talk of further easing from Bank of Japan in their September meeting is making speculators reach for yields in emerging markets. India being one of the favoured destination is finding enough takers for its debt equity assets. However, robust intervention from RBI has prevented a sharp appreciation of the currency. Over the near term range of 66:70-67:2.25 remains in play, ” Anindya Banerjee, currency analyst, Kotak Securities said.

The rupee had closed with gains of 15 paise to end at 67.03 on Tuesday following heavy selling of the greenback by exporters and banks.

The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.98 and for Euro stood at 74.62 on August 31, 2016. While the RBI’s reference rate for the Yen stood at 64.89, the reference rate for the Great Britain Pound (GBP) stood at 87.68.

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