Recouping early losses, the Indian rupee on Wednesday closed six paise higher at almost a three-week high of 60.61 against the American unit on constant dollar selling by exporters and some banks, amid increased inflows.
However, weakness in local stocks and strong dollar overseas confined the rupee rise, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed lower at 60.82 a dollar from previous close of 60.67. It immediately touched a low of 60.88 on early dollar demand from importers, mainly oil refiners, and firm US dollar overseas.
Later, it rebounded to a high of 60.52 on a sudden gust of dollar selling by exporters and some banks before settling at 60.61-level not seen since July 31 when it had closed at 60.55. The rupee gained six paise or 0.10 per cent. In straight three sessions, it added 60 paise or 0.98 per cent.
The benchmark S&P BSE Sensex on Wednesday snapped its six-session gaining streak and closed down by 106.38 points or 0.40 per cent. FIIs picked up shares worth Rs. 559.39 crore on Tuesday, as per provisional data with stock exchanges.
The dollar index hit the 11-month high and was trading above USD 82 — highest since September last year — against its major global rivals following the gradually strengthening of the US economic outlook.
Investors are now looking to a series of events that may help flesh out the Federal Reserve’s monetary policy outlook, including the minutes of the Federal Open Market Committee on Wednesday, and Fed Chairwoman Janet Yellen’s speech at Jackson Hole, Wyoming, on Friday.
