Rupee ends steady at 63.39 against dollar

In a volatile trade, the rupee on Friday trimmed its initial gains and closed steady at 63.39 against the American currency as dollar demand matched supply from exporters and banks.

Weakness in dollar overseas and firm local equity markets even failed to lift the rupee sentiment, a forex trader commented.

The domestic unit opened firmly higher at 63.32 compared to Thursday's closing level of 63.39 at the Interbank Foreign Exchange market on the back of steady dollar selling and also supported by a recovery in the domestic equity market.

However, the local currency turned extremely weak and drifted back to hit a fresh intra-day low of 63.47 following some fresh dollar demand and short covering.

It staged a smart rebound from its low towards the fag-end trade on dollar selling as well as suspected intrusion by the Reserve Bank to end steady at 63.39.

In overseas trade, the dollar was trading subdued against other major currencies on rising hopes for a deal between Greece and its creditors as well as easing volatility in equities worldwide. The US dollar index was up by 0.95 per cent at 95.75.

Meanwhile, the benchmark BSE Sensex rebounded by 87.74 points to finish at 27,661.40. Foreign portfolio investors sold shares worth Rs 254.10 crore yesterday, as per provisional data.