Rupee at 2-month high; trading at 66.77/USD

Mumbai: The Indian currency continued to gain strength against the US dollar for the second straight week. Rupee ended at a nearly two-month high of 66.77 on sustained dollar selling by exporters and speculative traders amid weak overseas tone. The rupee appreciated by a whopping 25 paise or 0.37 per cent this week.

Robust foreign portfolio investments into the equities and debt along with export proceeds predominantly supported the domestic currency to maintain its momentum even as sentiment remained upbeat for further advances. The passage of the Constitution Amendment bill on GST by Rajya Sabha further bolstered hopes of more capital flows.

Rupee rose on sustained dollar selling by exporters and speculative traders amid weak overseas tone.

Unveiling the biggest tax reform since Independence, the Rajya Sabha approved the GST bill to replace a raft of different state and local taxes with a single unified value added tax system to turn the country into world’s biggest single market and boost growth in Asia’s third-largest economy.

Maintaining its strong edge against the dollar, rupee resumed on a strong footing at 66.80 from last weekend’s closing value of 67.02 at the Interbank Foreign Exchange (Forex) Market. Rupee surged further to hit a high of 66.6900 before ending at 66.77, revealing a smart rise of 25 paise, or 37 per cent.

Robust foreign portfolio investments into the equities and debt along with export proceeds predominantly supported the domestic currency to maintain its momentum even as sentiment remained upbeat for further advances. The passage of the Constitution Amendment bill on GST by Rajya Sabha further bolstered hopes of more capital flows.

The local currency had cracked the psychological 67-barrier to hit a low of 67.0150 briefly on Wednesday before rebounding.
In the meantime, Foreign portfolio investors (FPIs) and institutional investors (FIIs) pumped in $311.29 million during the first four days of the week as per the Sebi’s record.

Source: PTI