Indian rupee ends steady at 63.75 against US dollar

By: | Updated: August 5, 2015 7:39 PM

Recovering from initial losses, the Indian rupee today closed barely steady at 63.75 against the US dollar on fresh selling of the greenback by banks and exporters amid sustained foreign capital inflows in equities.

Indian rupeeYesterday, the Indian rupee surged 30 paise to close at a two-week high of 63.74 on selling of the greenback by banks and exporters owing to a lower US dollar overseas. (Photo: Reuters)

Recovering from initial losses, the Indian rupee today closed barely steady at 63.75 against the US dollar on fresh selling of the greenback by banks and exporters amid sustained foreign capital inflows in equities.

The rupee resumed weak at 63.90 against previous closing of 63.74 at the Interbank Foreign Exchange (Forex) market and fell further to 63.93 on initial dollar demand from banks and importers on higher greenback in overseas markets.

However, it recovered afterwards to 63.72 on fresh selling of dollars by banks and exporters before finishing at 63.75.

The local currency moved in a range of 63.72 and 63.93 per dollar during the day.

Meanwhile, the dollar index was up by 0.12 per cent against a basket of six currencies in afternoon trade.

It stood tall against the yen and the euro in early Asian trade after Atlanta Federal Reserve President Dennis Lockhart expressed support for an interest rate hike in September.

At the New York market, the dollar finished higher against its rivals yesterday, reversing earlier losses, after Federal Reserve Bank of Atlanta president suggested that Fed policy makers are prepared to raise the Fed-funds rate in September.

Oil prices rose in Asia today as dealers predicted the latest US crude stockpiles and production data will point towards upbeat demand in the world’s top crude consumer, analysts said.

The benchmark BSE Sensex ended higher by 151.15 points, or 0.54 per cent, at 28,223.08. Veracity Group CEO Pramit Brahmbhatt said, “Not much movement was seen in the currency market today as the outcome of the RBI policy yesterday was in line with expectations.

“Investors looked cautious ahead of US jobless claims data scheduled to be released tomorrow which will show the road ahead for markets.”

The trading range for the Spot USD/INR pair is expected to be within 63.40 to 64.20.

In the forward market, the premium for dollar declined on fresh receivings from exporters.

The benchmark six-month premium payable in January moved down to 215.5-217.5 paise from 217-219 paise yesterday and far-forward contracts maturing in July, 2016 also moved down to 442.5-444.5 paise from 444-446 paise.

The RBI fixed the reference rate for the dollar at 63.8159 and for the euro at 69.3104.

The rupee fell against the pound sterling to close at 99.66 from 99.45 yesterday and advanced further against the the euro to 69.32 from 70.02.

It also firmed up further against the Japanese currency to 51.25 per 100 yen from 51.42 previously.

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