Forex: The rupee ended almost flat with negative bias

Rupee opened at 67.15 against the last weekend's level of 67.07 at the Interbank Foreign Exchange

Forex

: The rupee ended almost flat with negative bias against the American currency on mild dollar demand from importers in the face of firm overseas trend amid calmer market conditions.

Recovering from initial volatility, the home unit settled at 67.08 per dollar compared to 67.07 last weekend, showing a mere loss of one paisa or 0.01 per cent. Trading sentiment was by and large tepid as traders refrained from taking any fresh positions and anxiously awaited the announcement of the next RBI governor.

Robust capital inflows into equities and debts also aided sentiment for the local unit. FIIs continued their equity purchases on expectations strong reforms measures while good monsoon rains bolstered confidence of imminent rate cuts from the RBI to drive growth. Foreign portfolio investors and foreign institutional investors pumped in USD 329.52 millions during the first four days of the week as per Sebi's record.

Though optimism around the local currency eroded slightly ahead of a US Federal Reserve meeting next Wednesday, a forex dealer said. Initially slipping to an one-week low against the US dollar, rupee opened at 67.15 against the last weekend's level of 67.07 at the Interbank Foreign Exchange (Forex) following frantic dollar demand from banks and corporates.

It remained under immense pressure due to lack of market-moving factors and drifted further to hit a fresh low of 67.27. However, the domestic currency staged a resounding comeback, recouping most of its initial losses to hit a high of 67.0525 before settling little changed at 67.08.