In a volatile market, the rupee ended marginally higher by one paise at 66.85 against the US currency on mild selling of dollars by banks and exporters.
The Indian unit resumed higher at 66.82 per dollar against the yesterday’s closing level of 66.86 per dollar at the Interbank Foreign Exchange (Forex) market.
It moved in a range of 66.92 and 66.72 per dollar during the day before ending at 66.85 per dollar, showing a mere gain of one paise or 0.01 per cent.
The rupee had dropped by 23 paise, or 0.35 per cent, in previous two sessions.
The dollar index was up by 0.19 per cent against a basket of six currencies in the late afternoon trade. The dollar gained against the yen and other rivals in Asia trade today.
Yesterday, US dollar edged higher as China ramped up efforts to stabilise its currency, helping to restore confidence in the world’s second-largest economy.
Pramit Brahmbhatt, Veracity Group CEO said, “Today rupee opened on a positive note and as day progressed, rupee appreciated as we seen selling in USD at higher levels. Trading range for the spot USD/INR pair is expected to be within 66.8 to 67.1.”
Oil prices rebounded in Asia today, halting a plunge that saw fall below USD 30 a barrel for the first time in more than 12 years but analysts warned of further pressure on the commodity.
The benchmark BSE Sensex ended higher by 172.08 points or 0.70 per cent today.
In forward market, premium for dollar remained soft owing to consistent receivings by exporters.
The benchmark six-month premium payable in June edged lower to 193-195 paise against 194-196 paise and forward December 2016 contract declined to 403-405 paise compared to 404.50-405.50 paise yesterday.
The RBI fixed the reference rate for the dollar at 66.8394 and for the euro at 72.4272.
In cross-currency trades, the rupee firmed up against the pound sterling to finish at 96.44 from overnight close of 96.49 and strengthened further against the euro to conclude at 72.37 from 72.52 earlier.
The domestic currency recovered against the Japanese yen to settle at 56.56 from Tuesday’s level of 56.78 per 100 yen.