Rupee snaps 2-day rise, falls 8 paise to 66.52

The rupee today snapped its two-session winning run against the US dollar by dropping 8 paise to close at 66.52 on month-end demand for the American currency from importers despite lower greenback overseas.
The month-end dollar demand from importers, mainly oil refiners, mainly affected the rupee value against the dollar, a forex dealer said.
However, good foreign capital inflows restricted the rupee's fall against the dollar. Foreign portfolio investors (FPIs) and Foreign Institutional Investors (FIIs) bought shares worth a net Rs 411 crore yesterday, as per provisional data released by the stock exchanges.
The rupee resumed higher at 66.39 per dollar as against the yesterday's closing level of 66.44 at the Interbank Foreign Exchange and hovered in a range of 66.37 and 66.5525 per dollar before ending at 66.52 per dollar, showing a loss of 8 paise or 0.12 per cent.

The rupee had gained by 18 paise or 0.27 per cent in the previous two days.
The dollar index was down 0.56 per cent against a basket of six currencies in the late afternoon trade.

The RBI fixed the reference rate for the dollar at 66.4045 and euro at 75.4222.
In cross-currency trades, the rupee recovered against the pound sterling to finish at 96.79 from 96.98 yesterday.
However, it moved down further against the euro to 75.50 per euro from 75.13 per euro previously.
Pramit Brahmbhatt of Veracity Financial Services said,
"The rupee opened on a positive note at 66.46/USD against previous close of 66.50/USD, with a gain of 4 paise for the day. As it gained from level of 67.20/USD, we witnessed rupee taking breather in today's trading session. Weak outlook on dollar and rebound in domestic equity market helped the rupee to appreciate. To end the session, it ended with a gain of 4 paise at 66.46/USD."

Trading range for the rupee would be 66.20 to 66.50/USD.
However, the dollar rose against the yen during late Asian trade today, supported by buying from Japanese market participants ahead of their interim book closing.
In the forward market, premium for dollar inched up on mild paying pressure from corporates.
The benchmark six-month premium for February inched up to 160-162 paise from 159.5-161.5 paise yesterday while the forward August 2017 contract ended steady at 342-344 paise.
Meanwhile, the benchmark Sensex recovered by 69.11 points or 0.24 per cent to end at 28,292.81.