Rupee recovers due to RBI intervention

Mumbai: The rupee on Tuesday recovered from 15-month lows to close five paise higher at 67.08 against the US currency on suspected RBI intervention and stray dollar demand.

Suspected intervention by the Reserve Bank coupled with dollar selling by foreign banks predominantly helped the rupee to stay afloat, a forex dealer commented.

The local unit witnessed wide swings between a high of 66.98 and a low of 67.27 — fresh 15-month low — in day trade.

The local unit finally settled at 67.08, showing a gain of 5 paise, or 0.07 per cent. The currency had closed at a 15-month low of 67.13 against the US currency on Monday.

Crude oil prices retreated from 3-1/2 year highs as investors waited on an announcement by US  President Donald Trump on whether the United States will reimpose sanctions on Iran.

Brent crude, an international benchmark, was trading at $75.50 a barrel in early Asian trade.

In its first retreat in a week, US WTI crude dropped 1.3 per cent to $69.80 a barrel, the first retreat in a week.

A strong dollar in overseas markets however restricted any major gain in the rupee. The US dollar advanced its winning streak against major rivals following the US Federal Reserve bank chairman Jerome Powell comments to keep the path of monetary policy normalisation throughout 2018.

The RBI, fixed the reference rate for the dollar at 67.0809 and for the euro at 80.0074. The yield on the benchmark 7.17 per cent debt maturing in 2028 drifted to 7.58 per cent from 7.62 per cent.

Meanwhile, domestic bourses failed to hold early gains and ended near flat in a volatile trade.