Rupee bounces back from 3-week lows, up 30 paise to 66.63
The rupee staged a smart recovery from three-week lows on Friday and gained 30 paise to end at 66.63 against the American currency.business Updated: Jan 08, 2016 19:30 IST
The rupee staged a smart recovery from three-week lows on Friday and gained 30 paise to end at 66.63 against the American currency following a heavy dollar selling by banks and exporters.
Calmer local equities a day after abrupt sell-off spooked by China turmoil and smooth supply of dollars also boosted rupee sentiment, but the dollar’s strength overseas limited the rise.
The home currency resumed sharply higher at 66.75 from overnight close of 66.93 at the Interbank Foreign Exchange (forex) market and maintained its strong gaining momentum to hit a fresh intra-day high of 66.59, before concluding at 66.63, revealing a healthy rise of 30 paise, or 0.45%.
It briefly touched 66.78 in late afternoon trade due to stray dollar buying by some banks.
The domestic currency had closed at 66.93 to hit an over three-week low figure on Thursday.
In worldwide trade, the US dollar regained strength against major currencies after a brief correction ahead of this year’s first non-farm payroll data due later in the day.
In the meantime, most Asian bourses rebounded from their deep oversold territory led by heavily battered Chinese stocks after authorities scrapped the circuit breaker system even as China’s central bank allowed its currency yuan to strengthen for the first time in nine days.
The dollar index, which tracks the world’s reserve currency against a basket of its peers, is firmly higher by 0.53% at 98.82.
The stock market flagship index Sensex surged by over 82 points to end at 24,934.33, while the broader Nifty rose by 33.05 points to close at 7,601.35.