Snapping its three-day losing streak against the American currency, the rupee recovered by three paise to close at 67.65 on fresh selling of dollars by banks and exporters amidst a recovery in equities. The domestic unit resumed slightly higher at 67.67 per dollar as against Monday’s closing level of 67.68 at the interbank Foreign Exchange (Forex) market.
Later, it gained further to 67.52 on sustained bouts of dollar selling from banks before ending at 67.65, showing a gain of three paise or 0.04 per cent. It had dropped 83 paise or 1.24 per cent in previous three trading days. It hovered in a range of 67.52 and 67.74 per dollar during the day.
The domestic unit hovered in a range of 67.74-67.60 during morning deals. The dollar index was higher by 0.11 per cent against a basket of six currencies in early trade. Overseas, the dollar rose against the yen in Asian trade on Tuesday in the late afternoon trade, keeping pace with a gain for Tokyo stocks, and as investors weighed up China economic data.
The U.S. currency gained traction after the release of closely-watched China economic data. China’s gross domestic product expanded 6.8 per cent from a year earlier in the October-December quarter, compared with a market consensus for 6.9 per cent growth. Last year, China recorded a pronounced deceleration in growth with a 6.9 per cent pace, the weakest in a quarter century.
