Rupee bounces back, up 5 paise v/s $

12 Jul 2017

After a brief overnight setback, the rupee recovered by 5 paise to end at 64.54 against the US dollar on fresh selling of the American currency by banks and exporters.
Bearish greenback overseas tone largely aided the recovery momentum.
The uninterrupted spectacular bull-run in local bourses alongiwith robust capital flows further brightened trading undercurrent.
Though, overall forex market sentiment remained little shaky and uncomfortable in the midst of fresh political scandal headlines over the Russian ties to the President Trump administration.
The heavily anticipated Federal Reserve chairwoman's semi-annual monetary policy testimony in Washington too contributed to general nervousness.
On the domestic macro front, the consumer inflation data for June and IIP data for May will be released later in the day.
In the meantime, domestic bourses maintained their stellar record-breaking stint for the the third straight day following heavy buying in frontline energy stocks after global crude prices staged a healthy rebound.
The flagship sensex jumped over 57 points to end at a new closing peak of 31,804.82, while broder Nifty rose 30 points to record high of 9,816.10.
Global crude prices rebounded from recent sharp sell-offs to trade above USD 48-mark.
The rupee resumed firmly higher at 64.59 as compared to Tuesday's closing value of 64.51 at the Interbank Foreign Exchange (forex) market.
It moved in a tight range of 64.48 and 64.58 most part of the day with trader adopting a cautious stand ahead of key macro data despite outstanding performance by local equities.
The local unit finally settled the day at 64.54, revealing a good gain of 5 paise, or 0.08 per cent.
The RBI, meanwhile, fixed the reference rate for the dollar at 64.4969 and for the euro at 73.9715.
The dollar index, which tracks the U.S. currency against a basket of six major rivals, was up at 95.52.
In worldwide trade, the greenback traded steady against its major counterparts as investors were looking ahead to comments from Federal Reserve Chair Janet Yellen, who was due to make semi-annual testimony on monetary policy before the U.S. Congress on Wednesday and Thursday. (PTI)