Rupee ends steady at 63.75 against US dollar

Recovering from initial losses, the rupee on Wednesday closed barely steady at 63.75 against the US dollar on fresh selling of the greenback by banks and exporters amid sustained foreign capital inflows in equities. The rupee resumed weak at 63.90 against previous closing of 63.74 at the Interbank Foreign Exchange (Forex) market and fell further to 63.93 on initial dollar demand from banks and importers on higher greenback in overseas markets. However, it recovered afterwards to 63.72 on fresh selling of dollars by banks and exporters before finishing at 63.75.

The local currency moved in a range of 63.72 and 63.93 per dollar during the day. Meanwhile, the dollar index was up by 0.12 percent against a basket of six currencies in afternoon trade. It stood tall against the yen and the euro in early Asian trade after Atlanta Federal Reserve President Dennis Lockhart expressed support for an interest rate hike in September.

At the New York market, the dollar finished higher against its rivals yesterday, reversing earlier losses, after Federal Reserve Bank of Atlanta president suggested that Fed policy makers are prepared to raise the Fed-funds rate in September. Oil prices rose in Asia today as dealers predicted the latest US crude stockpiles and production data will point towards upbeat demand in the world's top crude consumer, analysts said. The benchmark BSE Sensex ended higher by 151.15 points, or 0.54 percent, at 28,223.08.