Rupee strengthens against dollar

NEW DELHI: After falling 20 paise in the preceding session, rupee strengthened 14 paise to 63.70 against the US dollar in trade today.

There were revived hopes that international creditors would reach a deal with Greece, avoiding the Greek default and a likely exit of the country from the bloc.

Euro was quoting modestly lower against dollar amid heightened volatility. The euro zone single currency had made a strong recovery, settling higher against dollar in the preceding session, despite concerns over Greece defaulting on its debt repayment today. There were concerns that the uncertainty in the region may refrain the US Fed from hiking interest rates this year.

Dollar index, which compares the greenback against a basket of major world currencies, though was up 0.51 per cent at 95.27. Yen too firmed up against the greenback.

A Greek had earlier told Reuters that the country will miss a $1.77-billion debt repayment to the International Monetary Fund (IMF) due today, after international creditors shut the door on extending a credit lifeline to the troubled-economy.

The Greek Prime Minister Alexis Tsipras has announced a week-long bank holidays and other capital controls to keep the financial system from collapsing due to mass withdrawals.

Rupee had closed at 63.84 against dollar on Monday, down 20 paise over its preceding close amidst month-end demand for the greenback from importers.