After two days of losses, the rupee on Tuesday recovered by 9 paise to end at 66.93 on fresh selling of dollars by banks and exporters amid weakness in American currency in the overseas market. Persistent foreign capital inflows also boosted the rupee value against the dollar, a forex dealer said.
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The rupee opened higher at 66.97 per dollar as against the on Monday’s closing level of 67.02 at the Interbank Foreign Exchange (FOREX) market. Later, it gained further on good bouts of dollar selling from banks to 66.9050 before ending at 66.93 per dollar, showing a gain of 9 paise or 0.13 per cent. The domestic currency had dropped by 17 paise or 0.25 per cent in previous two trading days. The local currency moved in a range of 66.9050 per dollar and 66.98 during the day.
The dollar index was trading down by 0.16 per cent against a basket of six currencies in the late afternoon trade. In the overseas market, the dollar softened against its rival currencies in the late afternoon trade as investors await Federal Reserve Chairwoman Janet Yellen’s semiannual congressional testimony on interest-rate policy. However, the US dollar was near 3-week high against a basket of currencies in early Asian trade.
Meanwhile, Foreign portfolio investors (FPIs) bought shares worth a net Rs 306.74 crore yesterday, as per provisional data released by the stock exchanges. The BSE benchmark Sensex fell marginally by 12.31 points or 0.04 per cent to close at 28,339.31 today. In forward market today, premium for dollar inched up on mild paying pressure from corporates.
The benchmark six-month premium payable in July ended stable from its previous level to 151-153 paise and far forward January 2017 contract inched up to 302-304 from Monday’s closing level of 301-303. The RBI fixed the reference rate for the dollar at 66.9439 and for the euro at 71.0877.
In cross-currency trades, the rupee ended higher against the pound sterling at 83.46/48 from 83.96/98 and also rose against the euro to settle at 71.03/05 from 71.35/37. While, it fell against the Japanese Yen to 59.04/06 per yen from 58.92/94 yesterday.