Rupee extends gains for 3rd day, ends at 67.05

A recovery in the domestic equity market boosted the rupee value

Extending gains against the American currency for the third consecutive day, the rupee today ended at 67.05 per dollar, higher by 2 paise on persistent selling of the greenback by banks and exporters in view of sustained foreign capital inflows into equities.

A recovery in the domestic equity market also boosted the rupee value against the dollar, a forex dealer said.

The rupee resumed lower at 67.15 as against Thursday's closing level of 67.07 at the Inter-bank Foreign Exchange (forex) market and dropped further to 67.25 on initial dollar demand from banks.

However, it recovered afterwards to 66.94 on fag-end selling of dollars before ending at 67.05, showing a gain of 2 paise or 0.03%.

It has gained by 30 paise 0.45% in three days.

The domestic currency hovered in a range of 66.94 and 67.25 per dollar during the day.

The dollar index was up 0.51% against a basket of six currencies in the late afternoon trade.

Overseas, the euro hovered near a 3-week high today, sitting on big gains after the European Central Bank suggested it was done with cutting interest rates for now.

The ECB on Thursday cut its main refinancing rate to zero from 0.05% and increased monthly asset buys to 80 billion euros from 60 billion euros.

The euro maintained its overnight strength during Asia trade today after European Central Bank President Mario Draghi signaled it was unlikely Thursday's rate cut would be followed with further reductions.