Rupee snaps 7-day losing streak, closes 10 paise higher

The currency recovered from initial losses to 64.95 before concluding the day at 65

Snapping its 7-day losing streak, the rupee today closed 10 paise higher at 65 against the US dollar on fresh selling of greenback by banks and exporters on hopes of resumption of foreign capital inflows into equity markets.

The rupee resumed lower at 65.19 as against yesterday's closing level of 65.10 and dropped further to 65.34 on initial dollar demand from banks and importers in view of a firm greenback in the overseas market amidst fall in crude oil prices.

However, it recovered from initial losses to 64.95 before concluding the day at 65, showing a gain of 10 paise, or 0.15 per cent.

It had lost 136 paise, or 2.13 per cent, in the previous seven days.

The local unit hovered in a range of 64.95 and 65.34 during the day.

The US Dollar Index was trading lower by 0.23 per cent in late afternoon trade.

In global markets, the dollar edged higher yesterday, extending its gains earlier in the session and snapping a six-session losing streak against the euro after a spate of strong economic data in the US.

Meanwhile, oil prices seem set to witness their seventh weekly fall in Asia, with US crude tumbling to fresh six-year lows as investors are worried that a global supply glut is set to last longer.

US benchmark West Texas Intermediate (WTI) for September delivery dropped 17 cents to USD 42.06 in late-morning trade after falling below USD 42 a barrel earlier in the session, the lowest since March 2009.

Meanwhile, the benchmark BSE Sensex rose sharply by 517.78 points, or 1.88 per cent, to settle at 28,067.31.