Rupee snaps 3-day losing streak, up 6 paise Vs dollar

The rupee snapped its three-day losing streak against the American currency, recovering by six paise to 63.94 per dollar on fresh selling of dollars by banks and exporters in view of good foreign capital inflows.

Mumbai: The rupee snapped its three-day losing streak against the American currency, recovering by six paise to 63.94 per dollar on fresh selling of dollars by banks and exporters in view of good foreign capital inflows.

The rupee resumed lower at 64.02 per dollar as against the last closing level of 64.00 per dollar at the Interbank Foreign Exchange (Forex) on initial dollar demand from banks and importers on the back of higher dollar overseas.

However, it recovered immediately to 63.87 per dollar before quoting at 63.94 per dollar at 1045 hrs, showing a gain of six paise or 0.09 per cent from its last close.

It had dropped by 30 paise or 0.47 percent in the last three days.

The local currency hovered in a range of 63.87 per dollar and 64.03 per dollar during the morning trade.

In the global market, the dollar rose against the euro yesterday, as investors braced for the US official jobs report, among jitters over Greece's bailout talks and a rebound in euro zone?s bond markets.

Meanwhile, the benchmark BSE Sensex dropped by 51.48 points or 0.19 percent at 1045 hrs.

Veracity Group CEO Pramit Brahmbhatt said, "Fresh selling of the US currency by exporters and banks supported the rupee though weak local equities and strong dollar capped its gains."

The trading range for the Spot USD/INR pair is expected to be within 63.40 to 64.20.

In the forward market, the premium for dollar declined further on sustained receipts from exporters.

The benchmark six-month premium payable in November fell further to 217-219 paise from 220-222 paise and forward contracts maturing in May 2016 also fell to 440.5-442.5 paise from 443.5-445.5 paise yesterday.

The RBI fixed the reference rate for the dollar at 63.8955 and for the euro at 71.8185.

The rupee recovered against the pound sterling to settle at 97.66 from 98.62 and recouped against the euro to 71.62 from 72.58 previously.

It also regained against the Japanese currency to 51.13 per 100 yen as compared to 51.56 yesterday.

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