Rupee ends steady against dollar at 67.95

Rupee gained on increased selling of the US currency by banks and exporters

In line with equity market, the rupee ended steady against the American currency at 67.95 per dollar on alternate bouts of selling and buying of the greenback amid persistent concerns over the UK leaving the European Union.

The rupee opened lower at 68 per dollar against Friday's closing level of 67.96 at the Inter-bank Foreign Exchange (Forex) and dropped further to 68.08 per dollar on initial dollar demand from banks and importers on the back of higher dollar in the overseas market.

However, it recovered afterwards to 67.81 per dollar on selling of dollars by banks and exporters before finishing at 67.95 per dollar.

The domestic unit hovered in a range of 68.08 and 67.81 during the day.

The dollar index was trading up 0.40 per cent against a basket of six currencies in the late afternoon trade.

The RBI fixed the reference rate for the dollar at 67.90 and euro at 74.8801.

In cross-currency trades, the rupee rose further against the pound sterling to finish at 89.76 from 93.13 on last Friday and also moved up against the euro to settle at 74.78 from 74.80.

While, the domestic currency dropped further against the Japanese yen to 66.81 per 100 yens from 66.26.

At overseas, the US dollar traded mostly up against its major rivals in the Asian trade, while the pound remained under siege, sliding back toward a 31-year low, reflecting the deeply bearish mood of investors after Britain opted to exit the European Union, triggering shockwaves across global markets.

Trading range for the spot USD/INR pair will be 68.20 to 67.80/USD.

In forward market, premium for dollars moved down further due to persistent receivings from exporters.

The benchmark six-month premium for November fell to 174-176 paise from the last weekend's level of 178-180 paise and far forward May 2017 contract also eased to 367-369 paise from 371-373.

Meanwhile, the Indian benchmark Sensex inched up by 5.25 points or 0.02 per cent to 26,402.96.

Oil prices suffered fresh losses in Asian trade today as the fallout from last week's decision by Britain to leave the European Union batters confidence and ushers in a period of uncertainty.

The US benchmark West Texas Intermediate fell 26 cents, or 0.55 per cent, to USD 47.38 and Brent shed 15 cents, or 0.15 percent, to USD 48.26.

Photograph: Reuters