1. Rupee ends nearly 5 paise down at 66.51 against dollar

Rupee ends nearly 5 paise down at 66.51 against dollar

Indian rupee settled nearly 5 paise down at 66.51 on Wednesday on account of higher demand for the American currency from importers and banks.

By: | New Delhi | Updated: October 5, 2016 5:10 PM

 

Indian rupee vs US dollar Indian rupee settled nearly 5 paise down at 66.51 on Wednesday on account of higher demand for the American currency from importers and banks.

Indian rupee settled nearly 5 paise down at 66.51 on Wednesday on account of higher demand for the American currency from importers and banks. Further, strengthening dollar against other currencies overseas after upbeat macroeconomic data of a sharp bounce in the US manufacturing PMI in September weighed on the rupee.

Domestic benchmark indices BSE Sensex and NSE Nifty snapped a three-day gaining streak on Wednesday tracking weak global cues. Sensex settled 113.57 points down at 28220.98, while Nifty closed 25.20 points down at 8,743.95.

The local currency gained nearly 13 paise on Tuesday after the Reserve Bank of India (RBI) slashed key interest rates by 25 basis points to 6.25 percent from 6.50 percent. On the global front, the dollar hovered near a two-month high against a basket of currencies, lifted by hawkish comments from a Federal Reserve officials strengthened expectations of a rate hike by the Fed within this year.

Foreign institutional investors (FIIs) stood net buyers in equity segment on Tuesday, while they were net sellers in debt segment, according to data released by the NSDL. In equity segment, the gross buying was of Rs 3,796.14 crore against gross selling of Rs 3,687.36 crore. Thus, FIIs stood as net buyers of Rs 108.78 crore in equities. In the debt segment, the gross purchase was of Rs 2651.44 crore with gross sales of Rs 3699.39 crore. Thus, FIIs stood as net sellers of Rs 1047.95 crore in debt.

According to Citi, rupee may benefit from the improved outlook for domestic growth, but we continue to expect RBI intervention to limit the real appreciation of the rupee in trade-weighted terms.

INR has appreciated by 39 paise in the past three days till October 4.

Tags: Rupee
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