Rupee snaps 3-day rise, down 21 paise to 66.64

Snapping its 3-day winning spree against the American currency, the rupee on Wednesday dropped by 21 paise to end at 66.64 on fag-end dollar demand from banks and importers despite a sharp rally in domestic equities.

Higher dollar in the overseas market mainly affected the rupee value against the dollar, a forex dealer said.

The domestic currency resumed higher at 66.35 as against Wednesday’s level of 66.43 at the Interbank Foreign Exchange (Forex) market and firmed up further to 66.3125 on initial selling dollars by banks and exporters in view of persistent foreign capital inflows.

However, it failed to maintain its initial gains and fell to 66.66 on fag-end dollar demand from banks and importers  on the back of higher dollar in the global market before finishing at 66.64, showing a loss of 21 paise or 0.32 per cent.

It had gained by 23 paise or 0.35 per cent in the previous three trading days.

It hovered in a range of 66.3125 and 66.66 per dollar during the day.

The dollar index was up 0.53 per cent against a basket of six global currencies in the late Asian trade after leading producers agreed on output cap.

The RBI fixed the reference rate for the dollar at 66.4293 and euro at 75.4637.

In cross-currency trades, the rupee recovered against the pound sterling to close at 94.86 from 95.05 on Tuesday.

It moved up further against the euro to 75.32 from 75.76 yesterday and also looked up further against the yen to 60.96 per 100 yens from 61.39 previously.

Japanese stocks rose as the yen weakened against the dollar. The Nikkei 225 Average settled 2.84 per cent higher.
The yen has weakened after hitting 17-month high against the dollar early this week. Strength in the local currency hurts the competitiveness of Japanese exporters.

The yen weakened further in the afternoon against its rival currencies during Asia trade, with higher stocks and oil prices brightening market sentiment.

In forward market, premium for dollar recovered on fresh paying pressure from corporates.

The benchmark six-month premium for September moved up to 198.5-200 paise from 195-197 paise yesterday and far forward March 2017 contract also looked up to 397.5-398.5 paise from 391-393 paise previously.

Meanwhile, Oil prices took a breather in Asia today after sharp gains fuelled by reports of an agreement between

Saudi Arabia and Russia on freezing output ahead of a key producers' meeting.

US benchmark West Texas Intermediate for delivery in May was down 34 cents, or 0.81 per cent, at $41.83.

Brent crude for June delivery, the European benchmark, was trading 19 cents, or 0.43 per cent, lower at $44.50 a barrel.

The BSE, the NSE, Forex, Money and Bullion markets will remain closed on April 14, on account of Dr Ambedkar Jayanti and April 15 on account of ‘Ramnavami’.