Rupee rules firm for 3rd day, up 10 paise to 67.04

Weakness of dollar in the overseas market also boosted the rupee value

The rupee continued to rule firm for the third day, on Thursday, moving up by another 10 paise to 67.04 per dollar on persistent selling of the American currency by banks and exporters in view of sustained foreign capital inflows into domestic equities.

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

A favourable outcome from the US Federal Reserve's rate-setting meeting and positive June quarter earnings amid a renewed push for GST reforms lifted the domestic equity market on Thursday.

The rupee opened higher at 67.06 as against the yesterday's closing level of 67.14 at the Interbank Foreign Exchange (Forex) market and hovered in a range of 66.9975 and 67.1050 before ending at 67.04 per dollar, showing a gain of 10 paise or 0.15 per cent.

The rupee has gained by 31 paise or 0.46 per cent in three days.

The dollar index was trading down 0.21 pct against a basket of six currencies in the late afternoon trade.

Meanwhile, the RBI fixed the reference rate for the dollar at 67.0550 and euro at 74.3650.

In cross-currency trades, the rupee fell against the pound sterling to close at 88.24 from 87.97 yesterday and also dropped against the euro to settle at 74.31 from 73.83 previously.

The domestic currency also fell against the Japanese yen to 63.99 per 100 yens from 63.61.

At overseas, the dollar took a step back today in Asian trade after the US Federal Reserve stopped short of signalling a near-term rate rise, while the yen gained on growing expectations the Bank of Japan won't deliver the stimulus investors are looking for this week.

The yen strengthened against the dollar and the euro in Asian trade Thursday, as jittery investors looked to the Bank of Japan's policy decision Friday.

There are growing expectations that the BOJ will announce more monetary easing when its policy setters wrap up their two-day meeting Friday, to help support the government's large-scale stimulus measures.

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

The benchmark six-month premium for December moved down further to 167-169 paise from 170-172 paise yesterday and forward June 2017 contract also declined further to 366-368 paise from 367.5-369.5 paise.

Oil prices edged up in Asia today after slumping for five-straight sessions to a three-month low after a surprise jump in US stockpiles built on increasing worries about a global supply glut.

US Benchmark West Texas Intermediate was up eight cents to $42.00 a barrel while North Sea Brent was up six cents at $43.53.

The benchmark Sensex rose by 184.29 points or 0.66 per cent to close at 28,208.62 on Thursday.