Indian rupee reacts downward by 6 paise to 66.62

By: | Updated: May 12, 2016 8:25 PM

The Indian rupee today fell by 6 paise to close at 66.62 against the US currency on fresh dollar demand from banks and importers on the back of higher greenback in the overseas market amid recovery in the domestic equities.

Indian rupee vs US dollarIndian rupee vs US dollar: Forex dealers said a weak dollar against major global currencies and a higher opening of the domestic equity market, capped the losses. (Photo: Reuters)

The Indian rupee today fell by 6 paise to close at 66.62 against the US currency on fresh dollar demand from banks and importers on the back of higher greenback in the overseas market amid recovery in the domestic equities.

Foreign capital outflows also affected the rupee value against the dollar, a forex dealer said.

Foreign Portfolio Investors and Foreign Institutional Investors sold shares worth a net Rs 362.19 crore yesterday as per the provisional data issued by stock exchanges

The rupee opened lower at 66.62 as against yesterday’s closing level of 66.56 at the Interbank Foreign Exchange (Forex) Market and moved down further to 66.6825 on initial dollar demand from banks and importers.

Later, it trimmed its earlier losses and recovered to 66.5350 in view of recovery in the equity market before ending at 66.62 per dollar, a loss of 6 paise or 0.09 per cent.

It moved in a range of 66.5350 and 66.6825 per dollar during the day.

The dollar was moderately higher against the yen in range-bound Asian trade today with investors sitting on the sidelines amid a lack of fresh trading cues.

Meanwhile, the RBI fixed the reference rate for the dollar at 66.5977 and euro at 76.0612.

In cross-currency trades, the rupee dropped against the pound sterling to finish at 96.39 from 96.09 yesterday.

It also declined further against the euro to 75.91 from 75.87.

However, the domestic currency moved up against the yen to 60.96 per 100 yens from 61.19. Meanwhile, market benchmark Sensex ended higher by 193.20 points or 0.75 per cent to 25,790.22.

Pramit Brahmbhatt of Veracity Financial Services said, “The rupee traded with negative bias despite of optimism that prevailed in domestic as well as global equity market. Nifty traded with high volatility for the day and closed with a gain of 51 points at 7900 levels. Thus to end the day, the rupee closed with a loss of 6 paise at 66.62/USD.”

In forward market, premium for dollar ended mixed due to uneven demand and supply transactions.

The benchmark six-month premium for October eased to 198-200 paise from 201-203 paise yesterday while far-forward April 2017 contract rose further to 403-405 paise from 400-402 paise.

Meanwhile, oil prices dipped in Asia today as investors locked in profits after the previous day’s surge to six-month highs that was fuelled by a surprise decline in US stockpiles.

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