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Rupee extends recovery, pulls back below 66 Vs dollar

Last Updated: Friday, August 30, 2013 - 15:41

Zee Media Bureau/Ajeet Kumar

New DelhI: Extending its yesterday's recovery, rupee rose below 66 level in afternoon trade against the US dollar on selling of dollars by banks and exporters in view of steps taken by Reserve bank of India.

The rupee resumed lower at over 67 per dollar as against the previous closing level of 66.55 per dollar at the Interbank Foeign Exchange (Foerx) Market but firmed up further to below 66.

The rupee had ended up 225 paise or 3.27 percent at 66.55 Vs US dollar after hitting an intra-day high of 66.51 in the previous session.

Having tumbled nearly 10 percent against the dollar so far this month, the rupee was set to record its largest monthly depreciation ever.

The battered rupee gained the most in at least 15 years yesterday, after the Reserve Bank of India eased pressure in the currency market by starting a facility for state-run oil refiners to buy foreign exchange.

Banks and exporters preferred to reduce their dollar position in view of recovery in the equity market.

Meanwhile, the benchmark Sensex rose by 230 points to 18,631.

The RBI on Wednesday said PSU oil companies could buy dollars through a special swap window effective immediately. Indian Oil, Bharat Petroleum and Hindustan Petroleum are the biggest buyers of dollars, requiring about USD 8.5 billion every month to import an average 7.5 million tonnes of oil.

The rupee is down nearly 19 percent so far this year despite efforts by policymakers to prop it up.

The dollar index was nearly flat at 81.933, after rising as high as 82.067 on Thursday, its highest level since August 5.

First Published: Friday, August 30, 2013 - 15:38
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