Rupee down 11 paise at 66.81

Mumbai
3 Mar 2017

The rupee turned shaky after a brief overnight recovery and ended lower by 11 paise at 66.81 against the US counterpart on fresh dollar demand from banks and importers.
Hardening expectations of an imminent interest rate hike in March against the backdrop of US central bank's upcoming meet and also Fed Chair Janet Yellen's speech largely kept domestic currency under immense pressure throughout the day.
Federal Reserve is due to speak on the economic outlook in Chicago later in the day.
Sluggish domestic equities also added some discomfort for rupee trade even as global stock rally took a pauses after Wall Street retreated overnight from historic highs.
Meanwhile, the dollar traded weak against its major rivals as traders unwound positions after two-day surge. The US dollar index was trading marginally weak at 102.00 in late afternoon session.
The domestic currency resumed substantially lower at 66.87 from Thursday's close of 66.70 at the Interbank Foreign Exchange (Forex) Market.
It remained subduded throughout the day and mostly traded in a tight range of 66.79 and 66.8850 before concluding at 66.81, showing a loss of 11 paise, or 0.16 per cent.
The home unit had ended higher by 12 paise on Thursday.
The RBI fixed the reference rate for the dollar at 66.8354 and for the euro at 70.3509.
In cross-currency trade, the rupee continued to move higher against the British pound and finished at 81.65 from 81.91 and also strengthened against the Japanese Yen to settle at 58.34 as compared to 58.38 earlier. However, it fell back against the euro to end at 70.44 from 70.22 on Thursday. (PTI)