Rupee snaps 2-day losing streak, asks 19 paise to value 66.47 vs dollar
Rupee strengthened by 14 paise to 66.52 against the US dollar in early trade on Thursday.business Updated: Apr 07, 2016 18:39 IST
The rupee snapped its two-day losing streak on Thursday as it gained 19 paise to close at 66.47 a dollar on fresh selling of dollars by banks and exporters as the US currency weakened in global markets.
The rupee resumed higher at 66.52 per dollar against the previous closing level of 66.66 per dollar at the Interbank Foreign Exchange (Forex) market and hovered in a range of 66.72 and 66.41 in day trade.
It settled at 66.47 per dollar, showing a gain of 19 paise or 0.29%. The domestic currency had dropped by 45 paise or 0.68% in the previous two days.
The dollar index was down by 0.13% against a basket of six currencies in late afternoon trade.
In the global market, the dollar touched nearly 18-month low against the Japanese currency as investors continued to be confident that Tokyo will not intervene in the market.
Meanwhile, Finance Minister Arun Jaitley today said that the rupee does not face any “serious challenge” of depreciation and will find its own level after initial bouts of volatility.
Rupee is impacted by global events but eventually recovers, he said.
His comments have come against the background of Barclays forecasting the rupee to drop to an unprecedented 69 a dollar by June 30 and weaken further to 70.50 by September 30 and end the year at 71.50 a dollar.
The rupee has seen volatility in recent months as it rallied 2.8% in March after witnessing a low of 68.845 a dollar in February -- the lowest since August 2013.
However, RBI governor Raghuram Rajan today said that a move towards an inflation target of 4% will help contain the currency market volatility.
“Our aim in the macro stabilisation is to make the exchange rate less and less an issue that investors have to worry about,” Rajan said.