Rupee Ends Higher at 66.49 on Dollar Selling

Mumbai: The rupee strengthened further by 18 paise to close at 66.49 against the US currency on Tuesday, due to persistent selling of dollar by banks and exporters after the Reserve Bank of India kept its key policy rates unchanged.

The RBI adopted an accommodative stance while leaving rates unchanged at its fifth bi-monthly policy review on Tuesday.

"Firm trend in equity market also supported the rupee sentiment," a forex dealer said.

India's economic growth accelerated to 7.4 per cent in the July-September quarter from growth rate of 7 per cent in the previous quarter ended June 30.

The Indian currency opened higher at 66.52 per dollar as against Monday's closing level of 66.67 at the interbank foreign exchange (forex) market. The rupee firmed up further to 66.4350 before ending at 66.49 per dollar, showing a gain of 18 paise or 0.27 per cent.

It moved in a range of 66.4350 per dollar and 66.60 per dollar during the day.

The dollar index was lower by 0.20 per cent against a basket of six currencies in the late afternoon trade.

"Rupee has remained range bound with positive bias. Interest rate decision and dovish view of RBI Governor has given support to equity market," Veracity Group CEO Pramit Brahmbhatt said.

The rupee is expected to appreciate and the trading range of the same is expected to be 66.20 to 66.80, he added.

Meanwhile, the Sensex ended 23.74 points or 0.09 per cent higher.

In the forward market, premium for dollar eased further on persistent receiving from exporters.

The benchmark six-month premium payable in May moved down to 208-210 paise from 208.5-210.5 paise yesterday and far forward November 2016 contract also slipped to 414-416 paise from 414.5-416.5 paise

The Reserve Bank of India fixed the reference rate for the dollar at 66.5180 and for the euro at 70.4359.

The rupee declined against the pound sterling to end at 100.28 from 100.07 yesterday while moved up further against the euro to settle at 70.45 as against 70.48.

The domestic currency firmed up further against the Japanese currency to close at 53.99 per 100 yen from 54.16.