Indian rupee pared its initial losses against the US currency on Tuesday and ended 8 paise up at 67.27 at the Interbank Foreign Exchange market following mild selling of American currency. Dollar’s fall against other emerging market currencies ahead of the US Federal Reserve’s two-day policy meeting also helped rupee gain.
The Indian currency had closed 27 paise down at 67.35 against the dollar on Monday.
“Indian rupee recouped all of the early morning losses against the US Dollar and closed higher around 67.27 levels on spot, thanks to a positive trend in the EM currencies against the US Dollar. Inflows continued in the Indian bonds as 10 year closed around 7.25 per cent. On Wednesday, traders may stay on sidelines ahead of the US FOMC meeting later during the night. An expected range of 67.20 to 67.35 is expected on spot, ” Anindya Banerjee, currency analyst, Kotak Securities said.
Yen gained despite expectations that the Bank of Japan will ease later this week as investors grow increasingly skeptical about the impact of further stimulus.
The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.36 and for Euro stood at 74.16 on July 26, 2016. While, the RBI’s reference rate for the Yen stood at 64.58, the reference rate for the Great Britain Pound (GBP) stood at 88.17.
Domestic stock markets ended lower on weak quarterly earnings. The 30-share BSE Sensex settled 118.82 points or 0.42 per cent down at 27,976.52. NSE Nifty also dropped by 45 points or 0.52 per cent to end at 8,590.65 after shuttling between 8,644.90 and 8,577.15.