Indian rupee was trading 5 paise down at 66.81 against the US dollar at the Interbank Foreign Exchange on Thursday after demand for US American currency increased among the bankers and importers.
Indian rupee closed 5 paise down at 66.81 against the US dollar at the Interbank Foreign Exchange on Thursday after demand for US American currency increased among the bankers and importers. Domestic equity markets firm opening following their global counterparts, which rose after US Federal Reserve meeting indicated that a rate hike in September is unlikely, capped the rupee’s fall. Sensex gained 118.07 points to close at 28,123.44, while NSE Nifty settled 49.20 points up at 8,673.25. Indian rupee had opened weak, down 10 paise at 66.86 a dollar. It had closed at 66.76 level on Tuesday. Forex markets were closed on Wednesday on account of Parsi New Year – Navroz.
Dollar weakness against other emerging currencies also capped rupee’s fall. Yen surged against the US currency. Indian currency hovered in the range of 66.75 and 66.86.
Anindya Banerjee, currency analyst, Kotak Securities, said,”Weakness in USDollar post FOMC minutes failed to have much rub on Rupee. Over near term we see a range of 66:50/60 and 67:00/67:05. In case of break above 67:05 it can aim for 67:30/40 levels.”
The Reserve Bank of India on Thursday fixed the reference rate of the rupee at 66.79 against the US dollar and 75.57 for the euro. These rates were at 66.89 and 75.01, respectively, on Aug 16. According to an RBI statement, the exchange rates for the pound and the yen against the rupee were quoted at 87.25 and 66.84 per 100 yens respectively, based on reference rates for the dollar and cross-currency quotes at noon.