Rupee down 3 paise on strong $

Mumbai
4 May 2017

The rupee snapped its two-day upmove against the US dollar and ended lower by a modest three paise at 64.18 on fresh bouts of demand for the American currency from importers and banks.
Trading was locked in tight ranges throughout the day amid uncertainty over the timing of an interest rate hike from the Federal Reserve.
However, the dollar maintained most of its post-Fed gains.
US central bankers stuck to their outlook for gradual monetary-policy tightening after they left interest rates unchanged overnight, as expected, but left open the prospect of raising them next month.
Continued capital outflow pressure also weighed on the currency market as foreign funds sold shares net worth Rs 517.74 crs yesterday as per the provisional figures issued by stock exchanges.
Meanwhile, domestic equities staged a spectacular rebound after their recent phase of consolidation following across the board buying spree with the broder Nifth ending the day at a new closing high of 9,359.90, while flagship sensex soared over 231 points to close at 30,126.21.
The rally was spearheaded by banking stocks after the Union Cabinet on Wednesday cleared an ordinance empowering the Reserve Bank of India (RBI) to act against wilful defaulters.
The home unit opened lower at 64.19 from Wednesday's closing level of 64.15 at the Interbank Foreign Exchange market (forex) here. (PTI)