Rupee down 13 paise on strong dollar demand

Pramit Brahmbhatt, Veracity Group CEO, said, “Today the rupee appreciated over quarter per cent for the day taking cues from strong local equities which closed on a high note as positive sentiments created by the disappointing United States data which increased the probability of delay in Fed interest rate hike”.

Foreign portfolio investors (FPIs) pumped in Dollars 184.82 millions during the first four days of the week, as per SEBI’s record.

However, it recovered afterwards to 64.80 before ending at 64.81 per dollar, showing a mere gain of one paise or 0.02 per cent on fag-end selling of dollars on the back of strong equity market. On the global front, dollar pulled away from seven-week lows, after better-than-expected USA inflation data kept alive the hopes that the Federal Reserve would raise interest rates this year.

The domestic unit hovered in a range of 64.85 and 64.7150 during morning trade.

The RBI fixed the reference rate for the dollar and euro at 64.9697 and 73.9940, respectively from the last weekend’s level of 64.7848 and 73.0837.

The rupee-greenback’s parity remained unchanged in interbank and open markets on Friday on the insignificant demand by corporate sector.