Rupee hits 3-month high of 66.26 against US dollar, up 11 paise

Mumbai: The rupee continued to rule firm for the fifth day Thursday to close at a fresh 3-month high of 66.26, rising 11 paise on persistent selling of US dollars by banks and exporters in view of sustained foreign capital inflows.

Weakness of dollar in the overseas market also boosted the rupee value against the dollar, a forex dealer said.

Foreign funds (FPP and FIIs) continued their buying spree as they bought shares worth Rs 1,442.47 crore yesterday as per the provisional data of stock exchanges.

The rupee resumed slightly higher at 66.35 as against yesterday's closing level of 66.37 at the Interbank Foreign Exchange (Forex) market here today and hovered in a range of 66.17 and 66.45 per dollar before closing at a fresh 3-month high 66.27, showing a gain of 11 paise or 0.17 percent.

It has gained 45 paise or 0.67 percent in 5 days.

The rupee had last ended at 66.14 per dollar on January 1, 2016.

Meanwhile, the dollar index was down by 0.28 percent against a basket of six currencies in the late afternoon trade.

Overseas, the US dollar was trading lower against its major rivals in late Asian trade as dovish comments from Federal Reserve Chair Janet Yellen continued to resonate, dampening demand for the currency.

The Indian benchmark Sensex ended marginally higher by 3.28 points or 0.01 percent to 25,341.86.

Oil prices were lifted today by a weaker dollar after Federal Reserve chief Janet Yellen signalled a cautious approach to US interest rate hikes, but rises were tempered by worries about a supply glut.

In forward market, premium for dollar moved down further on sustained receivings from exporters.

The benchmark six-month premium for August declined further to 175-177 paise from 178-180 paise yesterday and far forward February 2017 contract also eased to 375-377 paise from 378-380 paise.

The RBI fixed the reference rate for the dollar at 66.3329 and euro at 75.0955.

In cross-currency trades, the rupee recovered against the pound sterling to finish at 95.50 from 95.63 yesterday while moved down further against the euro to 75.40 per euro from 75.17 per euro.

However, the rupee recouped against the yen to 59.02 per 100 yen from 59.13 previously.