Rupee recovers by 18 paise against United States dollars

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The index had reached a 10-day high of 90.235 on Thursday, from a three-year trough of 88.253 late last week, before its rally lost a bit of steam.

The rupee opend the week with a gap down at 64.50 from weekend close of 64.21 and witnessed a precipitious tumble to mark its worst daily fall this year at the Interbank Foreign Exchange (forex) market due to sustained dollar pressure.

A fluctuation was seen during intra day as it registered the day's high and low at 64.95 and 64.85 respectively.

The RBI, meanwhile fixed the reference rate for the dollar at 64.5254 and for the euro at 79.8566.

Heavy dollar demand to meet payment liabilities and overseas commitments in the face of import finance restrictions after the alleged Punjab National Bank's stunning USD 1.77 bn fraud announcement also impacted the rupee trade, a forex dealer said. Apart from dollar's strength, increased outflows from domestic capital market also weighed on the domestic currency.

The Federal Reserve releases minutes of its January 30-31 meeting later today as investors look for further insight on inflation and interest rates.

In the meantime, foreign investors pulled out so far this month a staggering United States dollars 1 billion or Rs 6,850 crore from the Indian stock market in the wake of sell-offs globally.

Stamping its largest weekly decline this year, the Indian currency depreciated by a staggering 52 paise amid a short-term recovery in the United States dollars.

Higher opening in the domestic equity market helped rupee to gain However strong dollar dollar against major global currencies capped the gains in the domestic unit., dealers added.

The home unit also edged up against the Japanese yen to settle at 60.49 per yens from 69.50.

Elsewhere, the British pound retreated sharply against the U.S. dollar after the United Kingdom gross domestic product growth for the final quarter of 2017 was revised down as the Office for National Statistics published its second estimate on Thursday amid ongoing Brexit concerns.

In forward market today, premium for dollar dropped sharply due to consistent receiving from exporters.