The rupee opened marginally higher by two paise at 67.08/$ against US Dollar Thursday as against the previous close of 67.10/$.
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However, overcoming the initial volatility, the home unit largely traded in a range of 67.0850 and 67.16 in the absence of any supportive cues before ending with a modest five paise fall at 67.11.
Forex dealers said foreign fund inflows and a higher opening in the domestic equity market also supported the domestic unit.
The overall trading sentiment remained edgy ahead of the much awaited Fed chair Janet Yellen’s speech at Jackson Hole on Friday. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67.13 and for Euro stood at 75.80. The dollar firmed up against some global currencies on United States interest rate hike hopes this year after the Federal Reserve Vice Chairman Stanley Fischer said country’s economy was picking up, which weighed on the rupee, forex dealers said.
The benchmark six-month premium for January eased to 175-177 paise from 176-178 paise and the forward July 2017 contract also edged lower to 374-376 paise from 375-377 paise yesterday.
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The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.24 per cent at 94.30 in early trade.
