Rupee snaps losing streak, ends at 64

13 Sep 2017

The rupee snapped its 2-day losing streak against the American currency by recovering four paise to 64.00 per dollar on fresh selling of dollars by banks and exporters in view of heavy foreign capital outflows.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 1,230.74 crore on Tuesday, as per provisional data released by stock exchanges.
The Indian rupee resumed higher at 63.98 per dollar as against the Tuesday's closing level of 64.04 per dollar at the Interbank Foreign Exchange (Forex) Market and hovered in a range of 63.9625 per dollar and 64.0250 per dollar before finishing at 64.00 per dollar, showing a gain of 4 paise or 0.06 per cent.
The rupee had dropped by 26 paise or 0.41 per cent in previous two days.
Meanwhile, retail inflation rose to a five-month high of 3.36 pct in August due to costlier vegetables and fruits.
Industrial production grew a meagre 1.2 per cent in July from 4.5 per cent a year ago, bearing the brunt of a dismal show of the manufacturing sector -- especially that of capital goods -- putting pressure on RBI to lower rates further.
In Overseas market, the dollar steadied yesterday, with investors expecting another quiet day for the currency ahead of key inflation data due on Thursday that will be closely watched by the U.S. Federal Reserve as it considers when to raise interest rates.
With most currencies trading in narrow ranges, Britain s pound was in focus, hitting a one-year high above USD 1.33 and a six-week high on a trade-weighted basis.
Oil prices rose for a third straight day today after the International Energy Agency said global crude production fell for the first time in four months in August, helping to rebalance the oversupplied market.
West Texas Intermediate crude for October delivery jumped 50 cents, or one per cent to USD 48.73 a barrel, setting it on track for the highest settlement since last Thursday. (PTI)