Free Press Journal

Rupee snaps 2-day losing run, jumps 21 paise to 66.33


rupee against dollar

Mumbai: Snapping its two-day losing streak, the rupee today ended higher by 21 paise to 66.33 on fresh selling of dollars by banks and exporters driven by lower greenback overseas amid signs of strength in domestic macroeconomic indicators such as inflation figures. Hopes of resumption in foreign capital inflows in view of sharp recovery in equity market also boosted the rupee value against the dollar, a forex dealer said.

Deflationary trend continued for 10th month in a row with WPI inflation plunging to a historic low of (-)4.95 per cent in August on cheaper commodities, a development that may prompt the RBI to cut rates later this month. While the retail inflation in August was down at 3.66 per cent as against 3.69 per cent for the month of July.

The domestic unit resumed higher at 66.40 per dollar as against last Friday’s closing level of 66.54 at the Interbank Foreign Exchange market. It hovered in a range of 66.49 and 66.30 during the day before ending at 66.33 per dollar, showing a gain of 21 paise or 0.32 per cent. It had dropped by 13 paise or 0.19 per cent in previous two days.

The dollar index was up by 0.18 per cent against a basket of six currencies in the later afternoon trade. However, in Tokyo market, the US dollar was lower against the yen and euro in Asian trade today, with investors keeping a close eye on the policy meeting of the Federal Reserve and the Bank of Japan later this week. Meanwhile, the Indian benchmark sensex ended higher by 246.49 points or 0.96 per cent.