Rupee gains 6 paise against dollar; rises for 2nd day

The rupee today strengthened by 6 paise to close at 64.15 against the US currency on sustained dollar unwinding by exporters and banks, extending its gains for a second session.
Overall forex market sentiment remained cautious with the US Federal Reserve monetary policy meet outcome taking the centre stage.
The home currency largely trapped in a narrow range and oscillated between 64.1025 and 64.1675 throughout the session.
Lacklustre local equities along with modest amounts of capital outflows too weighed on currency trade as foreign funds sold shares worth about Rs 517.74 crore today, as per the provisional data from exchanges.

The benchmark sensex dropped 26 points to end at 29,894.80 and the broader Nifty moved down 1.85 points to 9,311.95.
The rupee resumed substantially higher at 64.12 today compared to previous close of 64.21 at the Interbank Foreign Exchange market here.

After moving in a narrow range during the day, it settled at 64.15, a gain of 6 paise, or 0.09 per cent.
The rupee had gained 3 paise yesterday.
The RBI, meanwhile, fixed the reference rate for the dollar at 64.1439 and for the euro at 70.0323.
In worldwide trade, the greenback edged up against major currencies as investors eyed a US Federal Reserve statement later in the day for guidance on whether bets for a June interest rate hike are justified.

In cross-currency trade, the home unit advanced further against the pound sterling to end at 82.91 from 82.92 per pound and firmed up against the euro to finish at 70.00 as compared to 70.08 earlier.
The local currency also edged higher against the Japanese Yen to close at 57.17 per 100 yens from 57.23 yesterday.
In the forward market today, premium for dollar continued to rule weak on the back of sustained receivings from exporters.
The benchmark six-month premium for October moved down to 157-159 paise from 160-162 paise and the far-forward April 2018 also drifted to 317-319 paise from 320-322 paise on Tuesday.