1. Indian rupee recoups early losses, ends 5 paise up at 66.61 against US dollar

Indian rupee recoups early losses, ends 5 paise up at 66.61 against US dollar

Indian rupee recouped early losses to end stronger by 5 paise at 66.61 on Monday against the US dollar at the Interbank Foreign Exchange.

By: | Updated: September 26, 2016 5:53 PM
Indian rupee vs US dollar The Indian currency touched a high and low of 66.78 and 66.61 respectively.

Indian rupee recouped early losses to end stronger by 5 paise at 66.61 on Monday against the US dollar at the Interbank Foreign Exchange. The local currency had opened weak by 13 paise at 66.78 against the US dollar on account of increased demand for the American currency by bankers and importers amid lower opening at domestic markets. The local unit had closed flat with marginal gains on Friday at 66.66 level against US dollar following selling of American currency by banks and exporters. Domestic equity markets opened lower on Monday following their global counterparts. Sensex slumped 373.94 points to end at 28,294.28, while NSE Nifty ended 108.50 points down at 8,723.05.

“It was a tale of two cities in Indian financial markets today. On one hand, Bonds continued to rally, on the hopes for a rate cut, but stocks took a beating on the back of weakness in global stocks. However, Rupee took cues from Debt market and reversed its morning weakness. It closed higher at 66:61 against USD. Near term range 66:30/40 and 66:80/90,” Anindya Banerjee, currency analyst, Kotak Securities said.

On the global front, yen strengthened against dollar after a speech by Bank of Japan Governor Haruhiko Kuroda stating that the bank is willing to use every possible tool, if necessary, to achieve its price stability objective. Kuroda said that there is no better opportunity than now to completely get out of deflation.

The currency touched a high and low of 66.78 and 66.61 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.71 and for Euro stood at 74.88 on September 26, 2016. While the RBI’s reference rate for the Yen stood at 66.13, the reference rate for the Great Britain Pound (GBP) stood at 86.47.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

FIIs as per Monday’s data were net sellers in equity segment, while they were net buyers in debt segment, according to data released by the NSDL. In equity segment, the gross buying was of Rs 5755.00 crore against gross selling of Rs 6002.71 crore. Thus, FIIs stood as net sellers of Rs 247.71 crore in equities. In the debt segment, the gross purchase was of Rs 1935.79 crore with gross sales of Rs 1386.40 crore. Thus, FIIs stood as net buyers of Rs 549.39 crore in debt.

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