Rupee gains 10 paise to end at 65.11 against dollar

22 March 2018, 06:43 PM
Rupee gains 10 paise to end at 65.11 against dollar (File Photo)
Rupee gains 10 paise to end at 65.11 against dollar (File Photo)

The rupee on Thursday rose by 10 paise to close at 65.11 against the US currency on foreign fund inflows amid the Federal Reserve sticking to its outlook of three rate hikes this year.

The rupee opened at 65.12 a dollar and touched a high of 65.0250 in day trade after a less hawkish Fed commentary on rate hike in 2018.

Foreign funds inflow in stocks and the dollar’s losses against the Asian peers bolstered the Indian currency, a forex trader said.

The Fed raised the benchmark lending rate by 25 basis points and projected three rate hikes this year, while forecasting a steeper path of increases in 2019 and 2020.

The dollar index was trading at 89.26, down 0.02 per cent from its previous close of 89.28. The greenback extended the losses in Asia, amid reports of a monetary tightening in Europe and Japan and growing trade war fears.

The 10-year bond yield was at 7.563 down 0.019, or 0.25 per cent compared to its previous close of 7.582 per cent. Bond yields and prices move in opposite directions.

According to the provisional stock exchange data, foreign investors put in Rs 161.11 crore in equity markets on net basis on Thursday.

Also Read: Sensex rises over 100 points, Nifty nears 10,200 points

The rupee opened on a strong note and surged by 9 paise to 65.12 against the US dollar at the interbank forex market on fresh selling of the greenback by exporters and banks.

Later, it gave up some of its gains to touch a low of 65.1575 and a high of 65.0250 in day trade but closed at 65.11 per dollar, a gain of 10 paise or 0.15 per cent over the previous close 65.21.

Meanwhile, the benchmark Sensex fell by 129.91 points, or 0.39 per cent to end at 33,006.27, while broader Nifty shed 40.50 points, or 0.40 per cent to settle at 10,114.75 due to renewed global trade war fears and losses in European markets.

The Reserve Bank of India fixed the reference rate of the rupee at 65.0622 against the US dollar and 80.3713 for the euro.

In the cross-currency trade, the rupee closed at 92.0630 from 91.3288 against the pound sterling. It fell against the euro to finish at 80.37 from 79.96 earlier.

Also Read: Rupee up 9 paise against dollar on Fed rate hike

The Indian unit also edged down against the Japanese yen to conclude at 61.44 per yens from 61.28 on Wednesday.

In the forward market on Thursday, the benchmark six-month premium payable in August moved down to 115.50-117.50 from 120-122 paise and the far-forward February 2019 contract also edged lower to 230.50-232.50 paise from 237-239 paise on Wednesday.

First Published: Thursday, March 22, 2018 06:31 PM
For all the latest Business News Download the News Nation App available on Android and iOS.