Extending gains against the American currency for the second consecutive week, the rupee ended at 67.05 per dollar, higher by three paise
Extending gains against the American currency for the second consecutive week, the rupee ended at 67.05 per dollar, higher by three paise on persistent selling of the greenback by banks and exporters in view of sustained foreign capital inflows into equities.
The rupee resumed lower at 67.21 as against the last weekend’s level of 67.08 at the Interbank Foreign Exchange (Forex) market and dropped further to 67.51 on initial dollar demand from banks and importers.
However, it recovered afterwards to 66.94 on fag-end selling of dollars before ending the week at 67.05, showing a gain of three paise or 0.04 per cent.
It has gained by 157 paise or 2.24 per cent in two weeks.
The domestic currency hovered in a range of 66.94 and 67.51 per dollar during the week.
Overseas, the euro hovered near a 3-week high during the week, sitting on big gains after the European Central Bank suggested it was done with cutting interest rates for now.
The ECB on Thursday cut its main refinancing rate to zero from 0.05 per cent and increased monthly asset buys to 80 billion euros from 60 billion euros.
Persistent foreign capital inflows into domestic equity market mainly boosted the rupee value against the dollar, a Forex dealer said.
The benchmark Sensex ended higher for the second consecutive week by moving up by 71.51 points or 0.29 per cent. Globally, the dollar strengthened on Friday against its main rivals after China guided its currency higher, assuaging concerns about authorities’ ability to guide the world’s second-largest economy through a dramatic transition.
But despite the dollar’s gain from Friday’s session, it finished the week flat against the yen, and lower against the euro and pound for a second straight week, bolstered by gains from Thursday’s session.
The ICE US Dollar index DXY, a measure of the buck’s strength against a basket of rival currencies, was up 0.2 per cent to 96.2390 on Friday. That dollar index is still down 0.8 per cent for the week after falling 1 pct on Thursday as the euro soared.
In the meantime, Foreign portfolio investors (FPIs) pumped in net USD 423.66 million in first four days of week as per the SEBI record.
The benchmark six-month forward dollar premium payable in August turned higher at 226.5-228.5 paise from preceding weekend’s level of 225-227 paise and far-forward contracts maturing in February-2017 also rose to 434.5-436.5 paise from 430-432 paise previously.
The RBI fixed the reference rate for the dollar at 67.0868 and the euro at 74.9427.
The rupee slipped against the pound to finish at 95.83 from last Friday’s level of 94.89 and also fell against the euro to settle at 74.32 from 73.67.
However, the domestic unit gained further against the Japanese currency to end at 58.91 per 100 yen from 58.96 last weekend.