Rupee extends gains for 2nd day, up 7p vs dollar

Mumbai, March 28: The rupee extended its gains for the second day on Monday against the US currency, moving up by 7 paise to close at 66.57 a dollar even as stock markets fell.

Fag-end selling of dollars by banks and exporters in view of persistent foreign capital inflows helped the Indian currency extend gains, dealers said.

The rupee resumed sharply lower at 66.90 per dollar as against last Wednesday’s closing level of 66.64 at the Interbank Foreign Exchange (Forex) market here.

However, it recovered afterwards to 66.56 per dollar on fresh selling of dollars by banks and exporters in view of good foreign capital inflows before ending at 66.57 per dollar, showing a gain of 7 paise or 0.11%.

It had gained 7 paise in the last session on Wednesday. Forex markets were closed on Thursday and Friday on account of Holi and Good Friday.

Foreign funds (FPP and FIIs) continued their buying spree as they bought shares worth Rs 976.91 crore on last Wednesday as per the provisional data of stock exchanges.

Also, the dollar index was down 0.02% against a basket of six currencies in the late afternoon trade.

In forward market, premium for dollar continued to fall due to persistent receivings from exporters.

The benchmark sixmonth premium for August ended lower 201-203 paise from 202-204 on last Wednesday and far forward February 2017 contract moved down to 404-406 paise from 406-408 paise. PTI