Indian rupee reversed its losses and ended 9 paise up at 67.08 against the US dollar on Friday at the Interbank Foreign Exchange market following a mixed set of US economic data amid rally in domestic stock markets.
The local currency has opened tad lower against the US dollar on Friday and lost 1 paise to 67.18. It had closed 3 paise up at 67.17 on Thursday.
US job data released overnight showed initial jobless claims hit a three-month low at a seasonally adjusted 253,000 for the week ended July 16. Mid-Atlantic factory activity, however, contracted, but details showed expanding new orders and employment.
“FPIs have poured $2.23 billion in the month of July, almost equally split between debt and equity segment. Over the near term, we expect the liquidity rush to continue, which means, US dollar may be now more at the mercy of the buying from RBI. We continue to see USD/INR to trade between 66.70/80 and 67.30 on spot over the near term. However, rupee to remain firm against Yen and GBP,” Anindya Banerjee, currency analyst, Kotak Securities said.
Domestic stock markets ended higher and supported rupee’s gain. The BSE Sensex settled 92.72 points up at at 27,803.24, while NSE Nifty closed 31.10 points up at 8,541.20.
The Reserve Bank of India’s reference rate for the dollar stood at 67.13 and for Euro stood at 74.03 on July 22, 2016. While the RBI’s reference rate for the Yen stood at 63.41, the reference rate for the Great Britain Pound (GBP) stood at 88.94.