Rupee trims initial losses, down by 4 ps against dollar

The rupee trimmed its initial losses, but was still quoting down by 4 paise to 67.59 against the American currency on bouts of continued dollar demand from importers and banks.
The local unit resumed lower at 67.65 per dollar as against yesterday's closing level of 67.55 at the Interbank Foreign Exchange (Forex) market.
It slipped further to 67.67 before quoting at 67.59 at 1030 hours and hovered in a range of 67.67 and 67.58 during the morning trade.
In the global market, the US dollar steadied against its major rivals in early Asian trade, but remained on track for weekly losses, as investors braced for US employment figures later in the session over the latest clues on the outlook for the Federal Reserve's monetary tightening path.

"Mixed data from US and fall in crude oil prices has
resulted in under-performance of commodity currencies and Asian risk assets. Non-farm payroll data tomorrow from US will determine further course for the currency markets," a dealer said.

In New York market, US dollar shrugged off a number of mixed economic reports, including a weaker-than-expected private-sector employment data, and rose for a second day against its main rivals yesterday.
Pramit Brahmbhatt of Veracity Financial Services said, "The rupee opened marginally lower by 4 paise at 66.59/USD compared to previous close of 66.55/USD. In absence of any cues and volatile trading session in domestic equity market, the rupee traded in narrow range. Our benchmark index Nifty closed with a gain of 29 points at 7736 levels. Thus, the rupee closed at 66.55 per dollar."

The benchmark Sensex recovered by 160.48 points or 0.64 per cent today.
In forward market, premium for dollar dropped further in view of sustained receivings from exporters.
The benchmark six-month premium for October moved down further to 207.5-208.5 paise from 210-212 paise yesterday and far forward April 2017 contract also fell further to 403.5- 404 paise from 406-408 paise.