Rupee breaks 5-day rally, drops 6 paise to seek 66.71 for a dollar
Rupee dropped 6 paise to close at 66.71 on fag-end dollar demand from banks and importers.business Updated: Jun 09, 2016 18:38 IST
Rupee snapped its five-day winning spree against dollar on Thursday as it dropped 6 paise to close at 66.71 on fag-end dollar demand from banks and importers on the back of higher crude oil prices amidst fall in the domestic equities.
Oil prices extended gains to multi-month highs following another drop in US supplies and the prospect of further disruptions to output from key producer Nigeria.
US benchmark West Texas Intermediate rose 32 cents, or 0.62%, to $51.55 a barrel, its highest since July. Brent gained 22 cents, or 0.42%, to $52.73, its highest since October.
The rupee opened higher at 66.58 as against the last closing level of 66.65 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to 66.55 on initial dollar selling from banks and exporters on the back of good foreign capital inflows.
However, it dropped afterwards to 66.79 on fag-end dollar demand from banks and importers before ending at 66.71, showing a fall of 6 paise or 0.09%.
The domestic currency had gained by 80 paise, or 1.19%, in previous five trading days.
The currency hovered in a range of 66.55 and 66.79 during the day.
Meanwhile, the dollar index was up by 0.38% in the late afternoon trade.