Rupee strengthens against US dollar, closes at 63.55
The rupee depreciated by five paise to 63.71 against the dollar in early trade on Tuesday due to a rise in greenback against other currencies overseas.
The rupee on Tuesday recovered 11 paise against US dollar and closed at 63.55 against on fresh selling of dollars by banks and exporters due good foreign capital inflows into the equity markets.
The rupee resumed lower at 63.70 per dollar as against previous closing of 63.66 at the Interbank Foreign Exchange
(Forex) market and dropped further to 63.75 on initial dollar demand from banks and importers on the back of higher
However, it recovered to 63.54 on fag-end selling of dollars by banks and exporters before concluding at 63.55 per
dollar, showing gain of 11 paise or 0.17%.
It moved in a range of 63.75 and 63.54 per dollar during the day. The somewhat stable situation in Greece and chances of a Fed rate hike, which sent dollar soaring and Gold hitting a 5-year low also effected the rupee value, dealers said.
At the overseas, the dollar hovered near five-week high versus the yen in early Asian trade after a top Federal
Reserve official added to expectations that US interest rates could be raised as early as September. The dollar index was down by 0.16% against the major currency.
Crude oil prices fell further in Asia today, with US crude falling below $50 a barrel as demand for the dollar-priced commodity takes a hit from a strong US currency, analysts said. The dollar got a boost after Federal Reserve chair Janet Yellen last week stuck to her forecast for an increase in the US central bank's key interest rate later this year, as the economy picks up pace.
Meanwhile, the benchmark 30-share index ended lower by 237.98 points, or 0.84%, to 28,182.14.