Rupee ends flat at 65.76 against USD

Mumbai: The rupee closed almost flat at 65.76 against the US dollar on some demand for the American currency from banks and importers despite a steady greenback in the overseas market.

The domestic currency opened lower at 65.80 against yesterday's level of 65.75 at the Interbank Foreign Exchange (Forex) market and dropped further to 65.84 on demand for dollars from banks.

However, it trimmed initial losses and recovered to 65.72 on selling of greenback by exporters before finishing at 65.76, still showing a loss of just one paise or 0.02 percent.

The local unit has dropped 27 paise, or 0.41 percent, in two days.

It hovered in a range of 65.72 and 65.84 during the day.

The dollar index traded higher by 0.11 percent against a basket of six currencies in late afternoon trade.

In Asian market, the dollar stabilised today as investors awaited the US jobs report to help them weigh the odds of a Federal Reserve rate increase this year.

Momentum on the US dollar's rise, which hit multi-month highs against the euro and the yen yesterday, tapered off on Friday after data showed new applications for unemployment benefits last week logged a bigger-than-expected jump in the US.

Meanwhile, the benchmark BSE Sensex ended lower by 38.96 points, or 0.15 percent, at 26,265.24.

Veracity Group CEO Pramit Brahmbhatt said, "The rupee traded range-bound as investors preferred to be cautious in an uncertain market where investors are waiting for the trigger to choose the direction in the market though on weekly basis."

The trading range for the Spot USD/INR pair is expected to be within 65.40 to 66.20.

In forward market today, premium for dollar eased further on sustained receivings from exporters.

The benchmark six-month premium payable in April eased further to 203-205 paise from 203.5-205.5 paise previously and far forward October 2016 contract also moved down further to 410-412 paise from 411-413 paise.

The RBI fixed the reference rate for the dollar at 65.7910 and for the euro at 71.5477.

The rupee recovered against the pound sterling to finish at 99.51 from 101.11 previously while dropped against the euro to 71.51 from 71.37.

The domestic currency also moved down against the Japanese unit to 53.94 per 100 yen from 53.93.