Rupee continues winning streak, gains 25 paise to settle at 66.50
The rupee strengthened by another 25 paise to an over two-and-a-half month high of 66.50 a dollarbusiness Updated: Mar 18, 2016 19:49 IST
The rupee continued its winning streak for the third straight session on Friday and strengthened by another 25 paise to an over two-and-a-half month high of 66.50 a dollar on persistent selling of dollar by banks and exporters amid persistent foreign capital inflows.
A sharp recovery in the equity market also boosted the rupee value against the dollar, a forex dealer said. Foreign funds continued their buying spree as FPI/FII bought shares worth Rs 744.49 crore on Thursday as per the provisional figures issued by stock exchanges.
The rupee resumed higher at 66.62 per dollar as against the last closing level of 66.75 at the Interbank Foreign Exchange market and dropped further to 66.49 before ending at 2-1/2-month high at 66.50, showing a gain of 25 paise or 0.37%.
It has gained by 88 paise or 1.31% in three days.
The rupee had last ended at 66.14 per dollar on Jan 1, 2016.
The domestic unit hovered in a range of 66.49 and 66.73 during the day.
Meanwhile, the dollar index was up 0.25 pct against a basket of six currencies in the late afternoon trade.
The dollar was weaker against the yen during the Asian session trade on Friday, as the Federal Reserve’s cautious stance on interest-rate increases puts downward pressure on the greenback.
Meanwhile, the benchmark BSE Sensex ended higher by 275.37 points or 1.12%.
In forward market, premium for dollar moved down further due to persistent receivings from exporters.
The benchmark six-month premium for August dropped to 208-210 paise from 210-212 paise on Friday and far-forward February 2017 contract also eased further to 413-415 paise from 414-416 paise.
The RBI fixed the reference rate for the dollar at 66.6088 and euro at 75.3012.
In cross-currency trades, the rupee dropped further against the pound sterling to finish at 96.15 from 95.76 on Thursday while recovered against the euro to close at 75.01 from 75.49.
The domestic unit also recovered against the yen to settle at 59.67 per 100 yen from 59.97.