Rupee Ends Higher At 66.72 On Dollar Selling

Mumbai: The rupee ended 12 paise higher at 66.72 against the dollar on selling of the US currency by banks and exporters on the back of persistent foreign capital inflows.

A weak dollar in overseas markets also strengthened the rupee sentiment, a dealer said.

The rupee opened higher at 66.68 against last closing level of 66.84 per dollar at the interbank foreign exchange (forex) market. It hovered in a range of 66.6650 and 66.7825 before closing at 66.72 a dollar, showing a gain of 12 paise or 0.18 per cent.

The dollar index was trading down by 0.52 per cent against a basket of six currencies in late afternoon trade.

Meanwhile, the Reserve Bank of India fixed the reference rate for the dollar at 66.7442 and the euro at 74.3797.

In cross-currency trades, the rupee fell against the pound sterling to 87.22 from 86.72 on Tuesday and also dropped against the Japanese yen to end at 65.94 per 100 yens from 65.39.

The domestic unit fell against the euro to 74.61 from 74.05.

Pramit Brahmbhatt of Veracity Financial Services said, "Rupee opened much stronger at 66.68/dollar with a gain of 16 paise as dollar traded weaker on back of weak US economic data."

The rupee trimmed some of the gains due to weak equity markets, he added.

"Trading range for the spot dollar/rupee pair will be 66.50 to 67/dollar," he said.

The BSE sensex ended 310.28 points, or 1.10 per cent, lower at 27,774.8.

In the forward market, premium for dollar firmed up on fresh paying pressure from corporates.

The benchmark six-month premium for January 2017 moved up to 191-192 paise from 189-191 paise on Tuesday and for the forward July 2017 contract also finished higher at 390-392 paise from 388-390 paise.

Meanwhile, oil prices extended losses in Asia on Wednesday after industry data showed a rise in US crude stockpiles, supporting oversupply concerns.