Rupee pulls back from 2-1/2 mth high vs $; down 4 paise

28 Jul 2017

After a ferocious overnight rally, the rupee retreated modestly by 4 paise to end at 64.15 against the US currency even as battered dollar struggled to bounce back globally.
Strong month-end dollar demand from importers and corporates largely weighed on forex trade.
A short-term reversal in domestic equity markets also added some pressure on rupee front.
Robust capital inflows into equities and debts largely cushioned the fall.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1,869.92 crore on Thursday, as per provisional data.
The Rupee put in for a strong rebound on Thursday and rallied hard to hit a fresh 2-1/2 month high in the wake of the FOMC statement amid a dovish tone from the Federal Reserve.
The dollar is back under pressure after Trump s disappointing result in the Senate on voting down Obamacare and also some caution ahead of US GDP announcement later in the day.
In the meantime, domestic brouses remained under modest selling pressure for the second-straight day and showed signs of fatigue following the series of record-breaking rally amid profit-taking at higher levels even as disappointing quarterly earnings weighed on bank and pharmaceutical shares.
The home currency opened weak at 64.19 from Thursday's closing value of 64.11 at the Interbank Foreign Exchange (forex) market.
It was trapped in a narrow-range against the dollar and moved between 64.12 and 64.24 most part of the day before ending at 64.15, showing a modest fall of 4 paise, or 0.06 per cent. On Thursday, the local unit had appreciated by a solid 26 paise. For the week, rupee consolidated gains by a good 17 paise. (PTI)