Indian rupee wiped off its initial losses and closed with marginal gains of 3 paise at 66.89 against the US dollar at the forex market on Wednesday as bankers and exporters took to selling of American currency. The Indian rupee had opened 7 paise at 66.99 against the US dollar. The Indian rupee closed at 66.92 level against US dollar on Monday. Forex markets were closed on Tuesday on account of of ‘Bakri Id’. Domestic equity markets closed higher that also helped rupee recover. Sensex settled with gains of 18.69 points at 28,372.23, while Nifty ended 11 points up at 8,726.60 in a choppy trade following buying in a few blue chip companies amid firm European cues.
“Rupee though got off to a weak start at around 67:02 levels against US dollar but recovery in risk assets during Asian and European session helped it recover. Custodial banks were heard to be selling dollar. Over the near term range is between 66:60 and 67:20 on spot,” Anindya Banerjee, currency analyst, Kotak Securities said.
Dollar strengthened against Yen after reports that Bank of Japan is considering further monetary easing steps, including taking interest rates deeper into negative territory, which capped rupee’s gains.
The currency touched a high and low of 67.03 and 66.81 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 66.96 and for Euro stood at 75.21 on September 14, 2016. While the RBI’s reference rate for the Yen stood at 64.83, the reference rate for the Great Britain Pound (GBP) stood at 88.49.The reference rates are based on 12 noon rates of a few select banks in Mumbai.