Rupee recovers by 7 paise on dollar selling

Mumbai: The rupee recovered by seven paise to 65.24 per dollar in late morning trade after on fresh selling of dollars by banks and exporters amid gains in equity markets.

The rupee opened on a weak note and touched a fresh two-year low of 65.40 against dollar in early trade today due to a strong dollar overseas. Dealers said selling of dollars by banks and exporters and gains in equity markets helped rupee recover early losses. The rupee moved in a range of 65.44 and 65.24 per dollar during the morning deals before quoting at 65.24 at 1040hrs. The rupee had closed at 65.31 a dollar at the Interbank Foreign Exchange (Forex) market on Monday. The currency market was closed yesterday for holiday.

“The impact of the Chinese Yuan depreciation is still being felt across global markets. The USD-INR currency pair has been no exception with the pair finally breaching the 65 per dollar figure tracking other Asian peers,” a dealer said. The dollar index was down by 0.14 per cent at 96.87 against a basket of six currencies in the early trade. In New York, the dollar rose, getting a lift from data showing US housing starts neared an eight-year peak, which raised expectations that the Fed will raise interest rates as soon as next month. Meanwhile, the benchmark 30-share index was trading up by 30 points, or 0.11 per cent, to 27,861.88 at 1045hrs.

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