Mumbai: The rupee snapped its last 2-day losing streak against the American currency, recovering marginally by four paise to 63.47, on fresh selling of dollars by banks and exporters due to weakness in greenback overseas.
Persistent foreign capital inflows into equity market also boosted the rupee value against the dollar, a forex dealer said.
The rupee resumed flat at 63.51 per dollar at the Interbank Foreign Exchange market and hovered in a range of 63.45 and 63.52 before finishing at 63.47, showing a gain of four paise or 0.06 per cent from its last close.
It had dropped by 12 paise or 0.19 percent in the last two days.
The dollar index was trading lower by 0.03 percent against its major global rivals today.
In the global market, the pound climbed to the highest level in more than seven years against the euro today after Bank of England Governor Mark Carney hinted UK interest rates could rise sooner than expected.
Oil prices rose slightly in Asia early thin trade, underpinned by a power outage at Britain's largest oilfield, though risks of oversupply following the Iranian nuclear deal and mixed economic data held back prices.
Meanwhile, the Indian benchmark Sensex ended marginally higher by 17.19 points or 0.06 pct today.
Pramit Brahmbhatt, Veracity Group CEO, said, "The rupee continued to trade range bound today also as investors preferred to stay away from the currency market and did not supported the rupee movement even after the firm closing of local equities". The rupee ended the day near yesterday's close slightly on the higher side at 63.47. The trading range for the spot USD/INR pair is expected to be within 63.20 to 63.80.
In the forward market, the premium for dollar ended higher on fresh paying pressure from corporates.
The benchmark six-month premium payable in December moved down to 203.5-205.5 paise from 203-205 paise yesterday and far-forward contracts maturing in June 2016 also closed higher at 431.5-433.5 from 427.5-429.5 paise yesterday.
The RBI fixed the reference rate for the dollar at 63.4928 and for the euro at 69.1437.
The rupee declined against the pound sterling to close at 99.15 from 99.05 previously and firmed up further against the euro to 69.11 from 69.17.
It also moved up against the Japanese currency to finish at 51.17 per 100 yen from 51.21.
