Rupee extends gains against dollar for 4th day, up by 7 paise

The rupee extended gains for the fourth straight day against the US currency on Thursday, advancing by 7 paise to close at 65.51 per dollar on selling of dollar by banks and exporters on hopes of more foreign capital inflows into equity market.

Foreign portfolio investors (FPIs) net bought shares worth Rs 116.08 crore yesterday, as per the provisional figures issued by stock exchanges.

The rupee resumed steady at 65.58 per dollar at the Interbank Foreign Exchange (Forex) market in view of cautious approach.

It moved in a range of 65.48 per dollar and 65.67 per dollar before ending at 65.51 per dollar, showing a gain of seven paise or 0.11 per cent.

It has gained 65 paise or 0.98 per cent in the last four sessions. The dollar index was trading higher by 0.11 per cent against a basket of six currencies in late afternoon trade.

"The USD-INR pair traded range-bound as investors preferred to stay cautious ahead of the major US economic data due for the day which will show the road ahead to the market," Veracity Group CEO Pramit Brahmbhatt said.

The trading range for the Spot USD/INR pair is expected to be within 65.10 to 65.90, he said. Meanwhile, the benchmark BSE Sensex ended up by 66.12 points, or 0.25 per cent.

In forward market today, premium for dollar continued to fall on sustained receivings from exporters. The benchmark six-month premium payable in March slipped to 202-204 paise from 205-207 paise and forward September 2016 also declined to 406-408 paise from 412-414 paise.

The RBI fixed the reference rate for the dollar at 65.5540 and for the Euro at 73.0796.

The rupee hardened further against the pound sterling to finish at 99.23 from yesterday's close of 99.58 and also firmed up further against the Euro to 73.09 from 73.51.

However, it dropped against the Japanese currency to settle at 54.71 per 100 yen from 54.52 yesterday. The forex and money markets will be closed tomorrow on account of 'Mahatma Gandhi Jayanti'.