Rupee snaps two-winning run, drops 8 paise against dollar
Forex dealers said weakness in the dollar against a few currencies overseas gave some ammo to the rupee.business Updated: Apr 28, 2016 18:31 IST
The rupee snapped its two-session winning run against the US dollar on Thursday by dropping 8 paise to close at 66.52 on month-end demand for the American currency from importers despite lower greenback overseas.
The month-end dollar demand from importers, mainly oil refiners, mainly affected the rupee’s value against the dollar, a forex dealer said.
However, good foreign capital inflows restricted rupee’s fall against the dollar. Foreign portfolio investors (FPIs) and Foreign Institutional Investors (FIIs) bought shares worth a net Rs 411 crore on Wednesday, according to provisional data released by the stock exchanges.
The rupee resumed higher at 66.39 per dollar as against the Wednesday’s closing level of 66.44 at the Interbank Foreign Exchange and hovered in a range of 66.37 and 66.5525 per dollar before ending at 66.52 per dollar, showing a loss of 8 paise or 0.12%.
The rupee had gained by 18 paise or 0.27% in the previous two days.
The dollar index was down 0.56% against a basket of six currencies in the late afternoon trade.
The RBI fixed the reference rate for the dollar at 66.4045 and euro at 75.4222.
In cross-currency trades, the rupee recovered against the pound sterling to finish at 96.79 from 96.98 on Wednesday.
However, it moved down further against the euro to 75.50 per euro from 75.13 per euro previously.
The domestic currency dropped against the yen to 61.55 per 100 yens from 59.67 on Wednesday.