The Indian rupee on Friday regains 7 paise to end at 68.23 per US dollar on fresh selling of the American currency by banks and exporters in view of mild recovery in domestic equities.
The weaker dollar overseas also boosted the rupee value, a forex dealer said.
The rupee resumed lower at 68.40 per dollar as against yesterday’s closing of 68.30 at the Interbank Foreign Exchange market and dropped further to 68.47 on initial demand for the US currency from importers in view of sustained foreign capital outflows.
However, it recovered afterwards to 68.14 on fag-end selling of dollars by banks and exporters due to weakness in greenback in global markets before ending at 68.23, showing a gain of 7 paise or 0.10 per cent.
The rupee had closed at 68.30 per dollar yesterday.
The domestic currency hovered in a range of 68.14 and 68.47 per dollar during the day.
The dollar index was up 0.13 per cent against a basket of six currencies in the late Asian trade.
In the overseas market, the yen weakened moderately against its rivals during Asia trade today, as Japanese authorities’ talking failed to give a new direction to the perceived safety of the Japanese currency.
However, the US dollar fell to a 15-month low against the yen yesterday, on track for its worst week against the Japanese currency since 2008, as fears of a global economic slowdown and concerns about stress in the banking system increased demand for safe havens.
Meanwhile, the benchmark Sensex today recovered marginally by 34.29 points or 0.15 per cent. Meanwhile, oil surged more than 5 per cent in Asia today, a day after tanking towards 13-year lows and following a report suggesting the OPEC producers’ club was open to working towards cutting output to stabilise volatile crude markets.
Pramit Brahmbhatt of Veracity Financial Services said, “The rupee started on a weaker note, taking cues from equity market as we saw the Nifty continued to slide. But as expected the rupee found support near 68.5 levels, and a rebound in domestic equity market helped the rupee to gain.”
In domestic equity market, we saw the Nifty taking breather after a massive fall as Nifty closed with a negligible gain of 5 points. The rupee closed with a gain of 7 paisa at 68.23 levels.
Trading range for spot USD/INR pair is expected to be within 67.8 to 68.5 levels.
In forward market, premium for dollar declined on good receivings from exporters.
The benchmark six-month premium payable in July closed lower at 196-198 paise as against 198-200 paise yesterday while far forward January 2017 contract also moved down to 410-412 paise from 412.5-414.5 paise.
The RBI fixed the reference rate for the dollar at 68.4365 and for the euro at 77.3606.
In cross-currency trades, the rupee dropped further against the pound sterling to finish at 99.22 from 98.59 yesterday while recovered against the euro to 76.97 from 77.27.
The domestic unit recouped against the yen to 60.67 per 100 yen from 61.21 previously.