The Indian rupee today ended marginally higher by one paisa to close at 66.43 against the American currency and continued its upward march for the third day today
The Indian rupee today ended marginally higher by one paisa to close at 66.43 against the American currency and continued its upward march for the third day today on selling of dollars by banks and exporters in view of sustained foreign capital inflows.
A positive trend in equity market also boosted the sentiment as the Sensex ended higher by another 123.43 points or 0.49 per cent for the second straight day today.
The domestic currency resumed higher at 66.40 as against yesterday’s level of 66.44 per dollar at the Interbank Foreign Exchange market and hovered in a range of 66.39 and 66.5575 per dollar before finishing at 66.43, showing a mere gain of one paise or 0.02 per cent.
The domestic currency has gained by 23 paise or 0.35 per per cent in the last three trading days.
The dollar index was down by 0.15 per cent against a basket of six global currencies in the late Asian trade.
The RBI fixed the reference rate for the dollar at 66.4950 and euro at 75.9107.
In cross-currency trades, the rupee dropped further against the pound sterling to close at 95.05 from 94.59 yesterday.
However, it moved up against the euro to 75.76 per euro from 75.78 yesterday and also looked up against the yen to 61.39 per 100 yens from 61.43 previously.
The US dollar gained against the yen but fell against the euro after the Japanese finance minister’s latest warning against excessive yen strength. Foreign portfolio investors (FPIs) bought shares worth a net Rs 107.23 crore yesterday, as per provisional data released by the stock exchanges.
Pramit Brahmbhatt of Veracity Financial Services said, “The rupee opened on a positive note above 66.39/USD thus by weakening USD but found resistance at lower levels. Strong USD compared to other currencies governed move of the rupee and that led rupee to depreciate since opening trades. But to end the day, the rupee closed on a flat note at 66.43/USD compared to previous day close.
In forward market, premium for dollar declined on fresh receivings from exporters.
The benchmark six-month premium for September fell to 195-197 paise from 199.5-201.5 paise yesterday and far forward March 2017 contract also moved down to 391-393 paise from 394-396 paise previously.
Menwhile, crude prices dipped in Asia today but held above USD 40 as traders looked forward to a summit of key oil producers next week to discuss freezing output and easing the supply glut.