Indian rupee appreciates by 4 paise to end at 66.99 against US dollar

By: | Updated: July 29, 2016 5:40 PM

Indian rupee appreciated by 4 paise to end at 66.99 levels against US dollar at Interbank Foreign Exchange (Forex) market on Friday after Japanese Yen gained against the dollar following Bank of Japan's stimulus amid selling by bankers and exporters.

Indian rupee vs US dollarIndian rupee appreciated by 4 paise to end at 66.99 levels against US dollar at Interbank Foreign Exchange (Forex) market on Friday after Japanese Yen gained against the dollar following Bank of Japan’s stimulus amid selling by bankers and exporters. (Photo: Reuters)

Indian rupee appreciated by 4 paise to end at 66.99 levels against US dollar at Interbank Foreign Exchange (Forex) market on Friday after Japanese Yen gained against the dollar following Bank of Japan’s stimulus amid selling by bankers and exporters. The local currency opened flat and gained 1 paise at 67.04 against the dollar. It had closed 10 paise up at 67.04 per dollar .

“Bank of Japan pushed on brakes than on accelerator. End result was a sharp rally in the Yen pairs. Strength in Yen has spilled over into broad based strength for other currencies against US Dollar. Rupee was no exception. The pair gained another 8/9 paise and closed around 66.96/97 levels on spot. Robust inflows into emerging markets continue and India remains a sweet spot. However, risk of RBI intervention can cap scope of gains in the pair. We expect a range of 66.70/80 and 67.30 on spot over the near term,” Anindya Banerjee, currency analyst, Kotak Securities said.

Domestic equity indices opened flat on Friday tracking globalc ues. They ended lower on profit booking amid disappointing stimulus steps from the Bank of Japan. Sensex closed 156.76 points down at 28,051.86, while Nifty ended 27.80 points points to close at 8,638.50.

“Today all eyes in the morning were on Bank of Japan for stimulus announcement. BOJ kept base money supply constant and increased their ETF buying and holding rate to Japanese Yen(JPY) 6 trillion annually as compared to JPY 3.3 trillion earlier. Market is disappointed as expectation was for a big bang announcement which supports helicopter money/ fiscal stimulus. Nikkei and Asian equities tanked JPY appreciated. USD/JPY now at 103.0 after jumping all morning,” Samir Lodha, MD, QuantArt Market Solutions said.

The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.034 and for Euro stood at 74.27 on July 27, 2016. While the RBI’s reference rate for the Yen stood at 64.69, the reference rate for the Great Britain Pound (GBP) stood at 88.29.

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