Rupee falls nine paise Vs US dollar to end at 60.56

  • PTI, Mumbai
  • Updated: Aug 26, 2014 10:03 IST

Retreating from over three-weekhighs, the Indian rupee on Monday fell nine paise to close at 60.56 against the Greenback on late profit booking in local equities and fresh dollar demand from oil importers.

However, sustained capital inflows and a weak dollar overseas limited the rupee fall, a forex dealer said.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 60.52 a dollar from previous close of 60.47. It tried to recover and logged an intra-day high of 60.41 on initial strong rally in local stocks.

However, the rupee met with strong resistance on fag-end profit booking in local shares and renewed dollar demand from importers, mainly oil refiners, to meet their month-end requirements. It fell back to a low of 60.58 before settling at 60.56, a fall of nine paise or 0.15 %.

Last Friday, it had gained 20 paise to end at more than three-week high of 60.47.

The Indian benchmark S&P BSE Sensex, which was up by over 210 points at mid-session, washed out early sharp gains and closed with a marginal gain of 17.47 points or 0.07 %.

Foreign Portfolio Investors (FPIs) injected Rs 302.06 crore last Friday, as per provisional data.

The dollar index against its major global rivals was down by 0.14 %.

Pramit Brahmbhatt, Veracity Group, CEO said: "Rupee initially showed some positive trend taking cues from local equity market which made new intra-day highs. However, the rupee lost his early gains and closed weak.

The trading range for the spot rupee is expected to be within 60.20 to 61.00."

In the forward market, premium declined on fresh receipts by exporters.

The benchmark six-month premium payable in January ended down at 217.5-219.5 paise from 220.5-221.5 paise previously.

Far-forward contracts maturing in July, 2015 also dropped to 461.5-463.5 paise from 466.5-467.5 paise.

The Reserve Bank of India fixed the reference rate for dollar at 60.4270 and for the euro at 79.7436.

The rupee turned negative against the pound to end at 100.45 from last Friday's close of 100.20 while improved further slightly to 58.28 per 100 Japanese yen from 58.31.

It also hardened to 79.91 per euro from last close of 80.24.

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