The Indian rupee ended flat at 61.79 against the US dollar on alternate bouts of demand and supply for the Greenback, amid the central bank's steps to increase liquidity in the system.
The Reserve Bank of India (RBI) on Monday made a surprise announcement to improve liquidity conditions in the banking system by reducing in the marginal standing facility (MSF) rate by 50 basis points to 9 per cent with immediate effect.
At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed higher at 61.68 a dollar from previous close of 61.79 and moved in a range between 61.60 and 61.91 before settling at its overnight closing level of 61.79.
The dollar demand from importers matched the supply from exporters, resulting the rupee to end stable.
"Despite yesterday's announcement regarding cut in the MSF, rupee was not seen gaining today. The rupee was seen sustaining above its support level of 61.40 for the third straight session. The overall international markets were also seen trading flat. The consistent break of these levels could only welcome further gains," Abhishek Goenka, Founder and CEO, India Forex Advisors, said.
The dollar index was up by 0.07 per cent against a basket of six major global currencies.
Meanwhile, the BSE Sensex on Tuesday pared its initial gains, still closing 88.51 points higher. According to data available with the stock exchange, foreign funds bought shares worth Rs 494.13 crore on Monday.
Source:- businesstoday.intoday.in
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