Snapping its 4-day losing streak, the rupee rose by 25 paise at 63.91 against the US dollar on fresh selling of the American currency by banks and exporters amidst renewed foreign capital outflows.
The rupee opened higher at 64.14 against yesterday’s closing of 64.16 at Interbank Foreign Exchange (Forex) market and hovered in a range of 64.12 and 63.89 before finishing at 63.91, showing a gain of 25 paise or 0.39 per cent.
It had dropped by 61 paise, or 0.96 per cent, in previous four trading days. Foreign portfolio investors sold shares worth a net Rs. 859.94 crore yesterday, as per provisional data released by the stock exchanges.
In the overseas market, the dollar advanced against the yen today as worries about China’s stock sell-off abated somewhat, but the buck fell against the pound after the latest reading on UK economic growth matched expectations.
Some stabilisation in Asian stocks prompted nervous investors to loosen their grip on the perceived safety of the Japanese currency.
The benchmark BSE Sensex dropped further by 102.15 points, or 0.37 per cent, to settle at 27,459.23.
Meanwhile, a two-day policy meeting of the Federal Reserve Open Market Committee (FOMC) begins today.
The US central bank is widely expected to keep interest rates at a record low at the meeting, but expectations are rising that a rate hike could come later this year.
