Rupee down 13 paise at 65.14 on $ buoyancy

5 Oct 2017

After a brief overnight recovery, the rupee once again turned shaky and ended lower by 13 paise at 65.14 on fresh bouts of dollar demand from importers.
The rupee came under pressure due to extremely bullish dollar sentiment overseas backed by robust US service sector growth data that hit its fastest pace in 12 years in September, coupled with impending Fed rate hike chances.
Sustained capital outflows as well as sluggish equity markets also adversely impacted local forex trade.
Most Asian currencies took a beating amid dollar surge.
At the Interbank Foreign Exchange market, the home currency opened lower at 65.09 from Wednesday's close of 65.01 on fresh demand for the dollar from importers.
It later moved in a narrow range with a weakening bias most part of the day with modest volatility, before drifting sharply to hit a fresh intra-day low of 65.19 in late afternoon deals.
The local unit finally settled at 65.14, showing a loss of 13 paise, or 0.20 per cent.
The rupee briefly touched a high of 64.97 during the trade.
The RBI, meanwhile, fixed the reference rate for the dollar at 65.1758 and for the euro at 76.5685.
Meanwhile, services sector activity in India expanded for the first time in three months in September as it rebounded from GST-related contractions, driven by a surge in new business orders that supported job creation, a monthly survey showed on Thursday. The Nikkei India Services PMI Business Activity Index rose to 50.7 in September -- from 47.5 in August -- a reading that pointed to a slight pace of expansion. (PTI)