Indian rupee pared some of its gains to close 4 paise up at 66.98 against US dollar at the Interbank Foreign Exchange (forex) market on Friday following selling of American currency by banks and exporters amid firm domestic equity markets. The BSE Sensex and NSE Nifty opened higher on Friday taking cues from the global markets that surged after weak US economic data indicated that there are low low chance of an interest rate hike by the Federal Reserve at next week’s meeting. However, it gave some of its gains after European markets open weak. Sensex closed 186.14 points up at 28,599.03, while NSE Nifty ended with gains of 37.30 points to settle at 8,779.85.
The Indian rupee has opened at 66.87 level on Friday and had closed 13 paise down at 67.02 against the US dollar on Thursday. Ruppe suddenly plunged in Thursday’s trade after reports surfaced that Indian rupee will be devalued by Commerce Ministry to boost exports. However, Union Commerce Minister denied the reports and said there were no such plans to devalue the rupee.
“Indian Rupee failed to hold onto its early session gains, which it scored on the back weak macro data from US overnight. After strengthening to 66:82, offers from state run oil companies and state run banks pushed Rupee back to where it had closed last evening, around 67:02 levels on spot. Over near term we see a range between 66:60-67:25 on spot, ” Anindya Banerjee, currency analyst, Kotak Securities.
Foreign fund inflows and dollar’s weakness against other currencies also supported the domestic currency. The local unit touched a high and low of 67.03 and 66.84 respectively.
The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.88 and for Euro stood at 75.15 on September 16, 2016. While the RBI’s reference rate for the Yen stood at 65.52, the reference rate for the Great Britain Pound (GBP) stood at 88.47.The reference rates are based on 12 noon rates of a few select banks in Mumbai.