Indian rupee closed flat at 66.96 level against the US dollar at the Interbank Foreign Exchange market on Thursday ahead of the US payroll data slated to be released on Friday. Earlier, Indian rupee opened 67.05 against the US dollar following rising demand of the American currency among banks and importers. However, it pared its initial losses intraday on account of dollar selling by banks and exporters. The domestic unit hovered in range of 67.07 and 66.93 during the say.
Domestic stock markets after a choppy trade closed in negative in the absence any major trigger. The markets also reacted to emergence of sell-off mainly in telecom stocks after new entrant Reliance Jio came out with free voice calls and cheaper data tariffs. Sensex slumped 28.69 points to end at 28,423.48, while NSE Nifty declined 11.55 points to settle at 8,774.65.
Dollar upward movement against other emerging market currencies stalled with investors positioning for Friday’s non-farm jobs report, which will set direction for market’s near-term US interest rate expectations.
“Indian rupee was well supported by large corporate flow in the market in the tune of $5-6 billion in large telecom companies, however, the gains were stunted by the relentless RBI. Near term range for INRUSD 66:70-67:25,” Anindya Banerjee, currency analyst, Kotak Securities said.
The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.95 and for Euro stood at 74.66 on September 1, 2016. While the RBI’s reference rate for the Yen stood at 64.78, the reference rate for the Great Britain Pound (GBP) stood at 88.05.