Mumbai, India (BBN) – The rupee was trading strong at 67.33 due to sustained selling of the US currency by exporters and banks, a strong domestic equity market and foreign fund inflows.
This was the third consecutive day of rise for the domestic currency, reports The Hindu Business Line.
Forex dealers said dollar’s weakness against other currencies overseas supported the rupee. A strong domestic equity market gave the uptrend some momentum, they added.
The domestic unit opened higher by 12 paise at 67.51 at the Interbank Foreign Exchange market today. It hovered in a range of 67.51 and 67.32 before quoting at 67.33, up 30 paise at 4:45pm local time.
Yesterday, the domestic unit gained 27 paise to end at over three-week high of 67.63 even as the Reserve Bank unexpectedly left policy rates unchanged.
Meanwhile, the 30-share BSE index Sensex closed higher by 457.41 points or 1.74 per cent at 26,694.28.
In the overseas market, the euro edged up and traded near a three-week high against the dollar on Thursday ahead of a European Central Bank policy decision, as the greenback lost momentum from the recent pull-back in US bond yields.
The euro has been the main focus for traders this week after Italian Prime Minister Matteo Renzi said he would resign after a stinging defeat in a referendum on constitutional reform.