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Rupee recovers 5 paise against dollar on foreign fund inflows

Press Trust of India  |  Mumbai 

The rupee today recovered by 5 paise to close at 64.54 against the US currency on fresh dollar selling by banks and exporters.

A bearish greenback tone overseas largely aided the rupee recovery. The rupee had fallen by 6 paise yesterday.

A spectacular bull-run in local stock markets along with robust capital flows further brightened the rupee sentiment, dealers said.

The jumped over 57 points to end at new closing peak of 31,804.82, while broader rose 30 points to record high of 9,816.10.

Foreign investors put in Rs 361.25 crore in equities on net basis today, provisional exchange data showed.

The rupee today resumed firmly higher at 64.59 as compared to last closing value of 64.51 at the (forex) market.

It moved in a tight range of 64.48 to 64.58 with traders adopting a cautious stand ahead of key macro data of IIP and retail despite outstanding performance by local equities.

The local unit finally settled the day at 64.54, revealing a good gain of 5 paise, or 0.08 per cent.

The RBI, meanwhile, fixed the reference rate for the dollar at 64.4969 and for the euro at 73.9715.

In cross-currency trades, the rupee recouped against the pound sterling to end at 83.05 from 83.35 per pound, but drifted further against the Euro to finish at 73.93 from 73.59 earlier.

It, also fell back against the Japanese Yen to close at 56.87 per 100 yens from 56.50 yesterday.

In forward market, premium for dollar displayed steady trend in the absence of any market-moving factor.

The benchmark six-month premium payable in December softened to 137-139 paise from 138-140 paise, while the far forward June 2018 contract was quoted unchanged at 283-285 paise.

Meanwhile, global crude prices rebounded from recent sharp sell-offs to trade above USD 48-mark after a sharp fall in US fuel inventories and a cut in forecast for crude output next year.

In worldwide trade, the traded steady against its major counterparts as investors were looking ahead to comments from Federal Reserve Chair Janet Yellen, who was due to make semi-annual testimony on monetary policy before the US Congress on Wednesday and Thursday.

The dollar index, which tracks the US currency against a basket of six major rivals, was up at 95.52.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, July 12 2017. 18:57 IST