Rupee firms up for 2nd day; up 8 paise to 66.44

Firm equity market boosted the rupee value against the dollar to some extent

Extending its gain against the American currency, the rupee firmed up further by 8 paise to close at 66.44 on persistent selling of dollars by banks and exporters in view of persistent foreign capital inflows amidst weakness in greenback overseas.

Firm equity market also boosted the rupee value against the dollar to some extent, a forex dealer said.

Foreign portfolio investors (FPIs) and Foreign Institutional Investors (FIIs) bought shares worth a net Rs 512.22 crore yesterday, as per provisional data released by the stock exchanges.

The rupee resumed steady at 66.52 per dollar at the Interbank Foreign Exchange (Forex) market, but dropped to 66.5950 on month-end dollar demand from importers.

However, it recovered afterwards to 66.40 on selling of dollars by banks and exporters before ending at 66.44, showing a gain of 8 paise or 0.12%.

The domestic currency has gained by 18 paise or 0.27% in two days.

Meanwhile, the dollar index was down 0.09% against a basket of six currencies in the late afternoon trade.

The RBI fixed the reference rate for the dollar at 66.5460 and euro at 75.1770.

In cross-currency trades, the rupee dropped further against the pound sterling to finish at 96.98 from 96.83 yesterday.

It also moved down further against the euro to 75.13 per euro from 75.06 per euro previously.

However, the domestic currency moved up against the yens to 59.67 per 100 yens from 59.97 yesterday.