Rupee chugs higher against $; up 4 paise

Mumbai
27 Jan 2017
The rupee made further ground against the benchmark currency, appreciating by 4 paise to to end at 68.03 on the back of modest dollar selling by banks and exporters.
The domestic currency largely shrugged off the early volatility and staged a smart rebound towards the fag-end trade despite greenback's bullish overseas sentiment.
Strong momentum in the domestic equity markets and revival in foreign capital inflows also aided the rupee rise, a forex dealer said.
The greenback contined its rally for a second straight day largely outperforming almost all major world currencies in Asian trade driven by strong US fundamentals ahead of Q-4 GDP growth of the world s largest economy and December durable goods data.
The Fed has made it clear that on-coming fiscal policy is a key determinant in shaping the rate hike outlook.
Meanwhile, the foreign portfolio investors (FPIs) bought shares worth a net Rs 1,378.81 crore on Wednesday.
The home unit opened substantially lower at 68.18 from Wednesday's closing value of 68.07 at the Interbank Foreign Exchange (Forex) market and weakened further to hit a low of 68.23 following robust month-end demand.
However, it staged a solid recovery towards the tail-end trade owing to smooth dollar supply and managed to settle higher at 68.03, up 4 paise, or 0.04 per cent.
Stretching the gains for the third day, it has appreciated by 17 paise against the dollar.
On weekly basis, the rupee has gained 15 paise after its relentless downtrend for the sixth straight week - the longest falling spell since November 2015. (PTI)