Indian rupee extended rally and closed with gains of 2 paise at 66.46 level against the dollar at the Interbank Foreign Exchange on Wednesday as bankers and exporters took to selling of American currency amid firm opening of domestic equity markets.
Indian rupee extended rally and closed with gains of 2 paise at 66.46 level against the dollar at the Interbank Foreign Exchange on Wednesday as bankers and exporters took to selling of American currency amid firm opening of domestic equity markets. Domestic equity markets ended higher, contributing to rupee’s rally. After a subdued opening at 28,198.88 points, the Sensex settled at 69.11 points or 0.24 per cent higher at 28,292.81, while NSE Nifty ended at 8,745.15, by gaining 38.75 points, or 0.45 per cent. The Indian currency had ended with gains of 13 paise at 66.48 on Tuesday against the dollar following selling of American currency by exporters and bankers.
On rupee’s movement on Wednesday, Anindya Banerjee, currency analyst, Kotak Securities said, “Indian Rupee was caught In a very quiet range of 66:50 and 66:43. Inflows continues in debt and equity segment. Near term range 66:30-66:60 on spot.”
However, dollar’s strength against some major currencies capped some of rupee’s gains. On the global front, the dollar rose versus the yen, while the euro nursed its losses after retreating on concerns over the health of the European financial system.
The partially convertible currency hovered in the range of 66.4350 – 66.4950. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.44 and for Euro stood at 74.45 on September 28, 2016. While the RBI’s reference rate for the Yen stood at 66.09, the reference rate for the Great Britain Pound (GBP) stood at 86.48.The reference rates are based on 12 noon rates of a few select banks in Mumbai.
The FIIs as per Tuesday’s data were net sellers in equity segment, while they were net buyers in debt segment, according to data released by the NSDL. In equity segment, the gross buying was of Rs 4413.60 crore against gross selling of Rs 4557.21 crore. Thus, FIIs stood as net sellers of Rs 143.61 crore in equities. In the debt segment, the gross purchase was of Rs 1764.25 crore with gross sales of Rs 636.13 crore. Thus, FIIs stood as net buyers of Rs 1128.12 crore in debt.