The Indian rupee closed flat on Tuesday at 66.74 against the US dollar at the Inter-bank Foreign Exchange (Forex) market amid selling in the American currency by the banks and exporters and weakness of dollar among other emerging market currencies. The Indian rupee had opened 4 paise down at 66.78 per US dollar. It hovered in the range of 66.69 and 66.78 during the say. The local currency had ended at 66.74 level on Monday.
Domestic stock markets also ended flat as investors remained cautious ahead of tabling of GST in Rajya Sabha. Sensex closed 21.41 points down at 27,981.71, while NSE Nifty settled 13.65 points down to settle at 8,622.90.
“Rupee closed flat. Demand for dollars from the central bank absorbed the FPI flows and exporter selling. Global markets was on a dollar selling spree, lead by Yen which gained on the back of lack of big bang stimulus plan from Japanese Govt. Near term range for rupee to be 66:40/60 and 67:00/67:10,” Anindya Banerjee, currency analyst, Kotak Securities said.
The yen gained against the US dollar after Japan’s cabinet approved a package of spending including 13.5 trillion yen in new fiscal measures.
The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.76 and for Euro stood at 74.59 on August 2, 2016. While the RBI’s reference rate for the Yen stood at 65.32, the reference rate for the Great Britain Pound (GBP) stood at 88.03.