Rupee loses on second straight day, drops 27 paise to end at 67.38

  • PTI, Mumbai
  • Updated: Mar 15, 2016 21:15 IST
The rupee opened dropped further to 67.4175 before ending at 67.38, showing a loss of 27 paise or 0.40% (Reuters Photo)

The rupee remained weak for the second straight day on Tuesday to fall by another 27 paise to close at 67.38 per dollar on sustained demand for the American currency from banks and importers.

Sharp fall in domestic equity market also affected the rupee sentiment, a forex dealer said.

The domestic unit opened lower at 67.23 against Monday’s closing level of 67.11 per dollar at the Interbank Foreign Exchange (Forex) market and dropped further to 67.4175 before ending at 67.38, showing a loss of 27 paise or 0.40%.

It has lost 33 paise or 0.49% in two days.

It hovered in a range of 67.1725 and 67.4175 during the day.

The dollar index was up 0.19% against a basket of six currencies in the late afternoon trade.

The dollar was lower against the yen in late Asian trade, following the Bank of Japan’s widely expected decision to stand pat after its two-day policy meeting.

The BOJ left its monetary policy unchanged on Tuesday even as it slightly downgraded its view of the economy. The BOJ will keep the rate on some commercial banks’ reserves at minus 0.1 pct, its nine-member policy board said.

The board also voted 8-1 to leave the central bank’s asset-purchase program, previously its primary policy tool, unchanged at Y80 trillion ($705 billion) a year.

“The market will be keenly awaiting the outcome of the crucial FOMC meet starting today,” a forex dealer said.

Pramit Brahmbhatt of Veracity Financial services said, “Taking cues from flat to negative global equity market and dollar index was positive, the rupee opened on a weaker note, thus by strengthening USD”.

Weak trade in domestic equity market added fuel to rally in USD, as Nifty closed with a loss of 78 points. So throughout the day, the rupee traded with a negative bias.

Meanwhile, the benchmark BSE Sensex fell sharply by 253.11 points or 1.02%.

In forward market, premium for dollar eased further due to persistent receivings from exporters.

The benchmark six-month premium for August declined further to 223-225 paise from 225-227 paise on Monday while far forward February 2017 contract closed unchanged at 432-434 paise.

The RBI fixed the reference rate for the dollar at 67.2290 and euro at 74.6444.

In cross-currency trades, the rupee recouped against the pound sterling to finish at 95.41 from 96.34 on Monday while moved down further against the euro to close at 74.72 from 74.61.

The domestic unit also fell against the yen to settle at 59.50 per 100 yen from 59.03. .

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