Snapping its four-day winning spree against the American currency, the rupee on Tuesday fell by 25 paise to 65.05 on fresh dollar demand from banks and importers despite persistent foreign capital inflows.
The domestic currency opened sharply lower at 64.95 as against Monday’s level of 64.80 at the Interbank Foreign Exchange (forex) market. It hovered in the range of 64.86 and 65.06 during the day before finishing at 65.05 per dollar, showing a loss of 25 paise or 0.39%.
The rupee had gained by 38 paise or 0.57% in previous four days.
Pramit Brahmbhatt, Veracity Group CEO, said, “Today the rupee fell for the first time in five days due to importers buying. The rupee traded in a thin range however depreciates by twenty five paise for the day and closed at 65.05. Today local equities sell off forced rupee to close in red however dollar index is trading down which cap the gain for dollar.”
The trading range for the Spot USD/INR pair is expected to be within 64.75 to 65.40.
“Fall in commodity and energy prices after yesterday’s China GDP data has dampened sentiment a bit amid global growth concerns,” a forex dealer said. The dollar index was traded down by 0.29% in the late afternoon trade as against a basket of six currencies. Overseas, the dollar gave back some of its overnight gains against the euro today after marking a 10-day high ahead of this week’s European central bank meeting, which some investors believe could set the stage for additional stimulus later this year. Meanwhile, the benchmark BSE Sensex fell by 58.09 points or 0.21%.