Rupee Holds Post-Yellen Gains; Ends Steady At 64.45 Vs USD

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Mumbai (PTI): The rupee ended virtually steady at 64.45 against the US currency in an otherwise quiet and range-bound trade amid weak greenback overseas sentiment.

Burgeoning capital inflows into the booming Indian economy backed by strong macro environment largely supported home currency to stay afloat.

Moreover, reports that Prime Minister Narendra Modi is scheduled to hold a high profit on Friday to review the foreign direct investment (FDI) policy norms to step up inflows into the country, also weighed on trade.

Having digested less hawkish monetary policy comments from Federal Reserve Chair Janet Yellen, domestic forex market witnessed a typical tight trading scenario ahead of key US macro economic data.

Though, home currency showed signs of weakening in early trade due to stray dollar demand from importers and some corporates before ending rock steady.

Asian and emerging market currencies breathed a sigh of relief overnight after Fed Chair Yellen indicated monetary policy tightening policy will be gradual.

The US Dollar, however, went nowhere against its Asian rivals.

Meanwhile, Indian bourses endured modest profit-taking after an uninterrupted four-day spectacular bull-run amid a mixed bag of Q1 earnings and revenue quidance from bellwether IT major – Infosys and TCS.

Both the flagship indices conquered fresh highs in opening trade cheered by Infosys’ better-than-expected June quarter results before succumbing to selling pressure.

The rupee resumed a tad higher at 64.44 as compared to Thursday’s closing value of 64.45 at the Interbank Foreign Exchange (forex) market.

It was largely confined to a tight range for most part of the day with no directional strength and gradually touched an intra-day low of 64.48 before recouping losses to end unaltered at 64.45.

On the contrary for the week, the local unit recovery by 15 paise against the dollar, snapping a four-week downtrend.

The RBI, meanwhile, fixed the reference rate for the dollar at 64.4539 and for the euro at 73.5677.

The dollar index, which tracks the U.S. currency against a basket of six major rivals, was down at 95.41.

In worldwide trade, the greenback traded little changed against a group of peers early on Friday, as currency investors remained cautious ahead of U.S. inflation data due later in the sessio
In cross-currency trades, the rupee dropped further against the pound sterling to finish at 83.62 from 83.28 per pound and fell back against the Euro to settle at 73.57 from 73.46 earlier.

But, it rebounded against the Japanese Yen to end at 56.96 per 100 yens from 56.99 yesterday.

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