Rupee snaps 2-day fall; up 11 paise to 65.41 vs dollar

TIL Desk/Business/New Delhi-Staging a smart rebound after two straight sessions of decline, the rupee gained 11 paise on Friday to end at 65.41 against the American currency on fresh bouts of dollar selling by exporters and banks. Strong foreign fund inflows and a firming trend in local equities largely backed up the momentum.

Unwinding of dollar short positions by speculative traders ahead of the much awaited healthcare bill by US President Donald Trump further supported the home currency, a forex trader said. Domestic equities gained further, charged by frantic buying in key banking stocks after Finance Minister Arun Jaitley promised a solution to tackle non-performing assets (NPAs) within the next few days.

Foreign portfolio investors (FPIs) bought shares worth a net INR 1,094.44 crore Thursday, as per stock exchanges data. The home currency resumed higher at 65.48 as compared to Thursday’s closing value of 65.52 at the Interbank Foreign Exchange (Forex) market on renewed dollar selling.