Snapping its four-day losing streak, the rupee on Monday recovered by 11 paise to end at 66.05 against the dollar on selling of the American currency by banks and exporters amid fall in domestic equities.
The rupee resumed higher at 66.11 per dollar against the last close of 66.16 at the Interbank Foreign Exchange market.
It gained further on bouts of dollar selling to 66.01 before ending at 66.05, showing a gain of 11 paise. It hovered in a range of 66.01 and 66.15 per dollar during the day.
In global markets, the US dollar was up against the basket of currencies in Asian trade amid relatively uneventful weekend with the dollar showing potential for gains if upcoming data strengthen the case for a hike in interest rates this year.
The dollar index was up by 0.13% as against a basket of six currencies. Meanwhile, the benchmark BSE Sensex ended lower by 246.66 points or 0.95% on Monday.
Also the ongoing uncertainty in the market has kept the rupee under pressure. Now the investors are waiting for the Tuesday’s RBI’s credit policy which will show the road ahead to the local markets.
In forward market, premium for dollar declined further on sustained receivings from exporters. The benchmark six-month premium payable in February eased further to 179-181 paise from the last weekend’s level of 181-183 paise and for forward August 2016 also fell further to 394-396 paise from 397-399 paise.
The RBI fixed the reference rate for the dollar at 66.0805 and for the Euro at 73.8119. The rupee moved up further against the pound sterling to close at 100.32 from the last weekend’s level of 100.79 and firmed up to 73.80 against the euro from 74.42. The rupee also recovered against the Japanese currency to 55.00 per 100 yen from 55.30.