Snapping its last 5-day winning spree against the US dollar, the rupee on Tuesday fell by 12 paise to close at 65.41 on fresh demand for the American currency from banks and importers on the back of higher greenback overseas.
However, good foreign capital inflows in view of strong domestic equity market failed to restrict the rupee fall, a forex dealer said.
The rupee resumed higher at 65.25 per dollar as against the Monday’s closing level of 65.29 at the Interbank Foreign Exchange market and inched up further to 65.24 on mild selling of dollars by exporters.
However, it washed out initial gains and dropped to 65.44 per dollar on fag-end dollar demand from importers before concluding at 65.41, showing a loss of 12 paise.
It had gained by 87 paise or 1.31% in the previous five sessions.
The domestic currency hovered in a range of 65.24 and 65.44 per dollar during the day.
Pramit Brahmbhatt, Veracity Group CEO, said, “The rupee slipped down against the US currency on dollar demand from the importers which forced the local unit to trade weak.
Though the fall was capped as local equities traded strong and closed on a positive note for the day. To end the day, rupee depreciated over ten paise and closed at 65.41, he added.
The trading range for the spot USD/INR pair is expected to be within 65.00 to 65.80.
The dollar index was trading down by 0.18% as against a basket of six currencies.
In Tokyo market, the dollar also maintained its strength on expectations that the Bank of Japan will ease its monetary grip later this month.