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Indian rupee closes flat at 66.65 against US dollar

Indian rupee reversed its initial losses and closed flat with marginal gains at 66.65 level against US dollar at the Interbank Foreign Exchange market on Friday on account of selling of American currency by banks and exporters.

By: | Updated: September 23, 2016 5:51 PM
Indian rupee vs US dollar Indian rupee vs US dollar: Increased foreign fund inflows in the domestic market and dollar weakness against some other currencies overseas, supported the local currency.

Indian rupee reversed its initial losses and closed flat with marginal gains at 66.65 level against US dollar at the Interbank Foreign Exchange market on Friday on account of selling of American currency by banks and exporters. Increased foreign fund inflows in the domestic market and dollar weakness against some other currencies overseas, supported the local currency. The local unit had opened weak and fell 4 paise at 66.70 against US dollar as demand for American currency increased among banks and importers amid flat opening of equity markets. The domestic currency had closed strong on Thursday by gaining 36 paise up at 66.66 against the US dollar following selling of American currency by bankers and exporters amid firm domestic markets.

Domestic equity markets that had opened flat on Friday closed lower on profit-booking and global cues. Sensex ended 104.91 points down at 28,668.22, while Nifty settled the day at 8,831.55 by falling 35.90 points.

“Indian rupee continues to be driven by fund inflows and expectations of a rate cut by Reserve Bank of India in October policy review. Non-deliverable forwards (NDF) continues to trade at a discount against the dollar. Near-term range 66:30/66:40,” Anindya Banerjee, currency analyst, Kotak Securities said.

On the global front, dollar gained against yen after the Federal Reserve trimmed its long-term interest rate expectations and the Bank of Japan rebooted its monetary policy framework.

The currency touched a high and low of 66.73 and 66.62 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.65 and for Euro stood at 74.67 on September 23, 2016. While the RBI’s reference rate for the Yen stood at 66.08, the reference rate for the Great Britain Pound (GBP) stood at 86.92.The reference rates are based on 12 noon rates of a few select banks in Mumbai.

The FIIs as per Friday’s data were net buyers in equity segment, while they were net sellers in debt segment, according to data released by the NSDL. In equity segment, the gross buying was of Rs 4812.32 crore against gross selling of Rs 4410.33 crore. Thus, FIIs stood as net buyers of Rs 401.99 crore in equities. In the debt segment, the gross purchase was of Rs 1535.20 crore with gross sales of Rs 1618.19 crore. Thus, FIIs stood as net sellers of Rs 82.99 crore in debt.

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