Rupee ends 21 paise lower vs dollar; snaps 3-day winning run
The rupee snapped its three-day winning spree against the American currency by falling 21 paise to 63.72 on fresh dollar demand from banks and importers in view of a firm dollar in the overseas market.business Updated: May 18, 2015 18:14 IST
The rupee snapped its three-day winning spree against the American currency by falling 21 paise to 63.72 on fresh dollar demand from banks and importers in view of a firm dollar in the overseas market.
The rupee resumed higher at 63.45 per dollar as against the last weekend's level of 63.51 at the Interbank Foreign Exchange (Forex) Market on initial selling of dollars by some banks and importers.
However, it failed to maintain gains on fag-end dollar demand from banks and importers on the back of firm dollar in the overseas market and fell to 63.7350 before ending at 63.72, a loss of 21 paise or 0.33%.
"Oil back at $60 supports concerns that the ongoing depreciation in rupee against US dollar could gain momentum, in the event of a rate cut," said Anand James, Co Head Technical Research Desk of Geojit BNP Paribas.
The domestic currency had gained 66 paise or 1.03% in the previous three days.
It hovered in a range of 63.45 and 63.7350 per dollar during the day.
Capital outflows, in small lots, also weighed on the rupee while rally in local stocks restricted its fall to some extent, a forex dealer said.
In the global market, the dollar was moderately higher against the yen in Asia trade on Monday, helped by a bout of buying early in the session that ultimately failed to gather wider momentum.
The dollar index, a gauge of six other major global rivals, was trading higher by 0.25%.
The benchmark BSE Sensex ended higher by another 363.60 points or 1.33%. Besides, FPIs sold shares worth Rs 38.31 crore last Friday, as per provisional data.
Meanwhile, oil prices rose in Asia on Monday following fresh tensions in Yemen and Iraq. Brent crude for July rose 14 cents to USD 66.95 a barrel in late morning trade.
Pramit Brahmbhatt, Veracity Group CEO said: "Rupee traded low today and depreciated over a quarter% for the day to close at 63.72 taking cues from strong dollar index."
The trading range for the spot $/ Rs pair is expected to be within 63.40 to 64.00.
In the forward market, the premium ended lower on fresh receivings by exporters.
The benchmark six-month premium payable in October fell to 208.5-210.5 paise from the last weekend's level of 212-214 paise and forward contracts maturing in April 2016 also moved down to 430-432 paise from 435-437 paise.
The Reserve Bank of India fixed the reference rate for dollar at 63.5543 and for the euro at 72.6743.
The rupee eased against the pound sterling to 99.90 from last weekend's level of 99.88 and also fell against the euro to 72.63 from 72.18.
The local currency fell against the Japanese currency to 53.26 per 100 yen from 52.99.