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Rupee Extends Gains Against Dollar For 2nd Day, Up 8 Paise

Sharp fall in equity market due to heavy foreign capital outflows failed to restrict rupee's gain against the US currency

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The rupee extended its gains for the second trading day on Monday, suring by another 8 paise to end at 67.74 per dollar on persistent selling of dollars by banks and exporters on the back of weakness of dollar in the overseas market.

However, sharp fall in equity market due to heavy foreign capital outflows failed to restrict rupee's gain.

The rupee opened flat at 67.82 per dollar at the Interbank Foreign Exchange (Forex) Market. The domestic unit hovered between 67.73 and 67.8550 per dollar during day before finishing at 67.74 per dollar, showing a gain of 8 paise or 0.12 per cent.

The rupee has gained by 25 paise or 0.37 per cent in two days.

Overseas, the dollar dipped against the yen early today, edging lower after US Treasury yields fell on mixed economic data. Trading was subdued as many key markets remained closed today for the Christmas holidays.

The dollar index was down by 0.07 per cent against a basket of six currencies in the late afternoon trade.

The dollar declined in the late afternoon trade as market participants waited to see if the administration of U.S. President-elect Donald Trump can deliver new pro-growth economic policies next year.

Meanwhile, the RBI on Monday fixed the reference rate for the dollar at 67.8331 and euro at 70.9670.

In cross-currency trades, the rupee firmed up further to end at 83.19 against the pound sterling from the last weekend's level of 83.22 and the euro also rose to settle at 70.81 as compared to 70.87.

However, rupee eased against the Japanese yen to end at 57.86 from 57.79 per 100 yens earlier.

In the forward market, premium for dollar edged up further to persistent paying pressure from corporates.

The benchmark six-month premium for May firmed up to 133.5-135 paise from 131-133 paise and the far-forward November 2017 contract also moved up to 280-281 paise from 277-279 previously.

Meanwhile, the Indian benchmark sensex dropped by 233.60 points or 0.90 per cent to close at 25,807.10.

(PTI)


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