Forex: The rupee recovered by 30 paise to 67.07 against the American currency following fresh selling of dollars by banks and exporters on the back of good foreign capital inflows, amid sharp recovery in domestic equities.
Foreign portfolio investors and foreign institutional investors pumped in USD 387.61 millions during the first four days of the week as per Sebi's record. The Indian benchmark sensex recovered by 709.60 points or 2.62 per cent during the week.
The rupee opened higher at 67.12 per dollar as against the last weekend's level of 67.37 per dollar at the Interbank Foreign Exchange (Forex), and hovered in a range of 66.83 and 67.22 per dollar before finishing the week at 67.07 per dollar, showing a gain of 30 paise or 0.45 per cent.
The rupee rallied to 5-week high at 66.83 per dollar during the week. The rupee had last settled at 66.76 per dollar on June 10, 2016. In overseas markets, the dollar was on track yesterday to book its largest weekly gain against the yen since February 1999 as a string of strong US economic data and expectations of fiscal stimulus from Japan helped the greenback to strengthen.
The last time the greenback strengthened this rapidly was February 19,1999, when the Bank of Japan adopted a zero interest-rate policy. The ICE US dollar index DXY, a measure of the greenback’s strength against a basket of six rivals, was up 0.5 percent at 96.5490.
