After a brief pause, the rupee on Monday declined by six paise to close at 67.84 against the American currency on fag-end dollar demand from banks and importers ahead of Tuesday’s RBI policy meet.
The domestic unit resumed slightly higher at 67.77 per dollar as against last Friday’s closing level of 67.78 at the Interbank Foreign Exchange (Forex) market and moved up further to 67.63 on initial selling of the American currency by banks and exporters on good foreign capital inflows into equities.
However, it dropped afterwards to 67.87 before ending at 67.84, showing a loss of 6 paise or 0.10% on fag-end dollar demand from banks and importers.
The domestic unit had gained by 45 paise or 0.66% on last Friday. The domestic unit hovered in a range of 67.63 and 67.87 during the day. The dollar index was down 0.24% against a basket of six currencies in late afternoon trade.
Globally, the yen weakened against the US dollar and euro in the late Asian trade, as the market continued to feel the heat from the Bank of Japan’s move to adopt negative interest rates Friday.
Pramit Brahmbhatt of Veracity Financial Services said, “Taking cues from domestic equity market, the rupee opened on a positive note as Nifty too opened with a gain. But as day progressed we saw rupee depreciating on back of dollar demand. Our bench mark index Nifty closed with a nominal loss of 8 points ahead of RBI’s monetary policy.” Thus the rupee closed with a loss of 6 paisa at 67.84 levels. Trading range for spot dollar/rupee pair is expected to be within 67.5 to 68 levels.