The rupee on Wednesday continued its upward march for the seventh day by surging 12 paise to close at 66.21 against the American currency on sustained selling of dollars by banks and exporters amid foreign capital inflows.
The rupee resumed higher at 66.26 as against Tuesday’s closing level of 66.33 at the Inter-bank Foreign Exchange (forex) market.
It moved in a range of 66.12 and 66.30 during the day before finishing at 66.21 per dollar, showing a gain of 12 paise or 0.18%. It has gained by 88 paise or 1.31% in seven days.
The dollar index was up 0.08% against a basket of six currencies in the late afternoon trade.
Overseas, the dollar edged down in Asian early trading on Wednesday after data overnight painted a mixed picture of the US economy, with major currency pairs trading in a narrow range as traders wound down in a holiday-heavy week.
However, the dollar posted small gains against most other major currencies in the late afternoon trade, with the euro weakening on the back of disappointing French data.
“French GDP for the third quarter was revised down, and consumer spending is also looking softer, which has led the euro slightly lower against the dollar,” said senior sales trader at London Capital Group.
Meanwhile, the Sensex rose by 259.65 points or 1.01% on Wednesday and premium for dollar declined in the forward market further on sustained receivings from exporters.
The benchmark six-month premium payable in May eased to 180.5-182 paise from 181-183 paise on Tuesday and far forward November 2016 contract also moved down to 391-392.5 paise from 391-393 paise.
The RBI fixed the reference rate for the dollar at 66.2020 and for the euro at 72.4117.
In cross-currency trades, the rupee firmed up further against the pound sterling to end at 98.55 from the previous closing level of 98.88 and recovered against the Japanese currency to settle at 54.77 from previous close of 54.82 per 100 yen.
It also recouped against the euro to 72.38 per euro from 72.55 previously.
Forex and Money markets will remain closed on Thursday, December 24, on account of Id-A-Milad.