Markets

Rupee pares early gains, slips 6 paise vs USD to 67.21

more-in

The rupee pared its initial gains to depreciate by 6 paise to 67.21 against the American currency in late morning deals following fresh bouts of dollar demand from importers and banks amid lower domestic equities.

The rupee opened higher by 67.12 against yesterday’s closing level of 67.15 at the Interbank Foreign Exchange (Forex) market here on Thursday.

Later, it hovered between 67.12 and Rs 67.23 during morning deals, before quoting at 67.21 at 1030 hrs.

Meanwhile, the dollar index was down 0.30 per cent at 94.31 against the basket of six global currencies.

Overseas, the US dollar was on defencive against its major rivals in early Asian trade, while sliding to a 21—month low against the yen after the Bank of Japan held off from expanding its monetary stimulus.

The greenback was already under pressure after the US Federal Reserve lowered its economic growth forecasts and scaled back its rate hike projections.

The benchmark Sensex was trading lower by 326.58 points, or 1.22 per cent, to 26,399.76 at 1050 hrs

Early trade- rupee value

The rupee advanced by two paise to 67.13 against the US dollar in early trade at the Interbank Foreign Exchange on increased selling of the American currency by exporters and banks.

Forex dealers said the dollar’s weakness against other currencies overseas after the US Federal Reserve left interest rates unchanged, supported the rupee.

However, a weak opening of the domestic equity market, restricted the gains.

On Wednesday, the rupee snapped its 4-day losing streak against the American currency and recovered 12 paise to end at 67.15 in line with the equity market and on hopes of foreign capital inflows.

Meanwhile, the benchmark BSE Sensex fell by 182.71 points, or 0.68 per cent, to 26,543.63 in early trade.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jan 28, 2020 4:39:36 PM | https://www.thehindu.com/business/markets/Rupee-pares-early-gains-slips-6-paise-vs-USD-to-67.21/article14425869.ece

Next Story