Rupee Ends At New One-Month High Of 66.91 Against Dollar

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Mumbai: The rupee on Thursday firmed up by another 14 paise to close at a fresh one-month high of 66.91 against the US dollar on persistent selling of the American currency by banks and exporters in view of firm equities amid weakness of the greenback in the overseas market.

Good foreign capital inflow also boosted the rupee value against the dollar, a forex dealer said.

Foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) bought shares worth a net Rs 290.53 crore on Wednesday, provisional data from the stock exchanges showed.

The rupee opened higher at 67.00 as against the last closing level of 67.05 at the interbank foreign exchange (forex) market and firmed up further to 66.87 before closing at over one-month high of 66.91 per dollar, showing a gain of 14 paise or 0.21 per cent.

The rupee had last settled at 66.76 per dollar on June 10, 2016.

The domestic currency has gained by 27 paise or 0.40 per cent in two days. It traded in a range of 66.87 and 67.0375 per dollar during the day.

The dollar index was trading lower by 0.03 per cent against a basket of six currencies in the late afternoon trade.

Meanwhile, the Reserve Bank of India fixed the reference rate for the dollar at 66.9136 and euro at 74.3544 today.

In cross-currency trades, the rupee moved down further against the pound sterling to finish at 89.51 from 89.00 the previous day and also dropped against the euro to 74.72 from 74.27.

The domestic currency continued to rule firm against the Japanese yen at 63.30 per 100 yens from 64.07 on Wednesday.

Overseas, the US dollar mostly traded lower against its major rivals in early Asian trade, while the yen surrendered its early gains and sterling pushed higher but remained capped ahead of a Bank of England meeting that is expected to deliver an easing to blunt the economic fallout of Britain’s vote to leave the European Union.

The pound rose firmly against other major currencies on Thursday, as investors waited for the Bank of England’s first post-Brexit policy decision to see if the central bank will cut rates for the first time in seven years.

Analysts said the UK currency had gotten a boost overnight from new Prime Minister Theresa May’s reshuffle of cabinet, particularly in appointing Philip Hammond as the new finance minister.

Meanwhile, oil prices rebounded in Asia on Thursday thanks to a weak dollar and bargain-hunting a day after the commodity sank to fresh two-month lows.

US benchmark West Texas Intermediate was up 61 cents, or 1.36 per cent, at $45.36 while Brent crude rose 57 cents, or 1.23 per cent, to $46.83.

The benchmark Sensex continued to rule firm for the fourth consecutive day, surging 127 points to close at a fresh 11-month high of 27,942.11 on persistent buying mainly in consumer durable and banking counters despite rise in inflation figure amidst higher European cues.