Hindu Business Line file photo
Mumbai, India (BBN) – The Indian rupee wiped off its initial losses and was trading strong at 64.82 as the dollar slipped against a basket of currencies, weighed down by caution over the impending US-China summit and geopolitical concerns.
The greenback had risen to a three-week high of 100.850 overnight on an upbeat ADP report on US private sector employment, reports The Hindu Business Line.
But the currency tumbled from the three-week high despite hawkish-sounding minutes from the latest Federal Reserve meeting, which showed most policymakers think the Fed should begin trimming its $4.5 trillion balance sheet later this year.
The rupee depreciated 18 paisa to 65.05 against the US dollar in early trade at the Interbank Foreign Exchange market today on fresh demand for the American unit from importers and banks.
Dealers attributed the rupee’s fall to fresh demand for the US currency and a weak domestic equity market.
However, dollar’s weakness against some currencies in the global market limited the rupee’s fall, they said.
The domestic unit hovered in a range of 65.05 and 64.79 before quoting at 64.82, up 5 paisa at 3.45 pm local time.
Yesterday, the rupee had gained 16 paisa to close at a fresh 17-month peak of 64.87 against the US dollar on heavy selling of the American currency by banks and exporters.
Meanwhile, the benchmark BSE Sensex ended the session down by 46.90 points or 0.16 per cent at 29,927.34.
BBN/SK/AD
