Rupee weakens 6 paise against dollar.

The rupee weakened 6 paise to 66.83 against the US dollar in early trade at the Interbank Foreign Exchange on Monday following fresh demand for the American currency from banks and importers. Moreover, the US dollar’s gains against some currencies overseas on strong jobs data put the rupee on the backfoot, forex dealers said.

However, a higher opening of the domestic equity market capped the rupee’s losses. The rupee had strengthened further by 14 paise to end at 66.77 against the US currency on Friday on the back of sustained dollar selling by exporters amid weak overseas signals.

Meanwhile, the benchmark BSE Sensex rose further by 136.83 points, or 0.48 per cent, to 28,215.18 in early trade.

The rupee strengthened by 14 paise to end at 66.77 against the US currency on Friday on the back of sustained dollar selling by exporters amid weak overseas tone. Robust FII inflows into the equities and debt predominantly supported the domestic currency to sustain its momentum for the second consecutive day.

The dollar strengthened against the yen on Monday, extending its gains after bumper US job figures bolstered expectations of faster economic growth and raised the probability of a Federal Reserve interest rate increase in 2016.

The dollar’s broad gains put its index against a basket of six major currencies as high as 96.522 on Friday, rising 1.6 per cent from its five-week low of 95.003 touched on Tuesday.

Source : indianexpress.com​