Rupee edges up 3 paise to 64.48 against US dollar

Extending gains for the second consecutive session, the rupee today rose by 3 paise to 64.48 a dollar, shrugging off weaker-than-expected GDP numbers.
Forex market sentiment turned bit shaky after the Gross Domestic Product (GDP) data showed that growth declined to 6.1 per cent in the January-March quarter while the expansion of eight core sectors declined to 2.5 per cent in April.
India lost the tag of the world's fastest growing major economy to China with a gross domestic product growth of 6.1 per cent in the fourth quarter. For the full 2016-17 fiscal, GDP growth stood at a three-year low of 7.1 per cent.

Trading has been thin and confined to extremely narrow range in the absence of any market moving factors.
The domestic currency resumed higher at 64.48 against Wednesday's close of 64.51 at the Interbank Foreign Exchange (Forex) Market.
It then traded in a tight range of 64.42 and 64.56 most part of the day before ending at 64.48, showing a small gain of 3 paise, or 0.05 per cent.

The local currency had ended 15 paise higher yesterday.
The RBI, meanwhile, fixed the reference rate for the dollar at 64.4704 and for the euro at 72.4518.
Going into the RBI policy next week, currency traders preferred to lighten up their positions, though custodian banks were seen buying dollars in early trade for their foreign investor clients.

Robust capital inflows into equities and debt market also expectations of a rate cut from the RBI in its policy review next week largely helped the rupee to stay afloat, a forex dealer said.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1,048.93 crore yesterday, as per provisional data.
Domestic equities settled the day marginally lower after a choppy trade.
The benchmark Sensex moved down 8.21 points to end at 31,137.59, while broader Nifty fell 5.15 points to 9,616.10.
In worldwide trade, the greenback regained some lost ground on expectations of a rise in interest rates this month after San Francisco Federal Reserve Bank President John C Williams said on Wednesday that three rate increases are most likely this year.

The dollar index, which tracks the US currency against a basket of six major rivals, was trading higher at 97.21.
In cross-currency trades, the rupee retreated against the British Pound to settle at 82.89 from 82.81 per pound, but ended a tad higher against the euro at 72.37 as compared to 72.38 yesterday.
The local unit also strengthened against the Japanese Yen to finish at 58.02 per 100 yens from 58.20 earlier.
In forward market today, premium for dollar remained weak owing to sustained receivings from exporters.
The benchmark six-month premium payable in November edged down to 147-149 paise from 149.5-151.5 paise and the far forward May 2018 contract edged lower to 296.5-298.5 from 300-302 paise yesterday.

In the international commodity front, crude prices rebounded sharply from a three-week low buoyed by expectations the United States could pull out of a global climate accord and also supported by a report that showed US crude stockpiles had fallen more than expected.
Trump said he would announce later on Thursday a decision on whether to keep the United States in a global pact to fight climate change, as a source close to the matter said he was preparing to pull out of the Paris agreement.
The global benchmark Brent crude futures for August were up 58 cents, or 0.8 per cent, at USD 51.34 a barrel in early Asian trade.