Rupee snaps 2 days' rise vs dollar, down 5 paise
Snapping its two-day rising streak, the rupee on Monday slipped by 5 paise to close at 63.57 per dollar on fresh demand for the American currency from banks and importers amid sharp fall in the domestic equity market.business Updated: May 25, 2015 18:40 IST
Snapping its two-day rising streak, the rupee on Monday slipped by 5 paise to close at 63.57 per dollar on fresh demand for the American currency from banks and importers amid sharp fall in the domestic equity market.
The rupee resumed lower at 63.62 as against the last weekend's level of 63.52 at the Interbank Foreign Exchange (forex) market and dropped further to 63.67 before ending at 63.57 per dollar, disclosing a loss of five paise or 0.08%.
It had gained by 30 paise or 0.47% in the last two days. The local currency moved in a range of 63.67 and 63.53 during the day.
The dollar remained firm against the yen and the euro in the Asian market today following comments by Federal Reserve Chairwoman Janet Yellen late last week and renewed concerns about Greece's debt problems.
The euro fell after Greek leaders said the country won't make International Monetary Fund repayments that are due in June.
The dollar index, a gauge of six other major global rivals, was trading higher by 0.13%.
In the New York market, the dollar recorded its first weekly gain against the euro in five weeks on last Friday, wrapping up the week up 3.4%.
Meanwhile, the benchmark BSE Sensex ended lower by 313.62 points or 1.12%.
Crude prices rose on bargain-hunting in Asia today after sliding last week, but a supply glut and a resurgent dollar are likely to cap gains, analysts said.
US benchmark West Texas Intermediate for July delivery climbed 14 cents to $59.86 a barrel and Brent crude for July added eight cents to $65.45 in late-morning trade.
Pramit Brahmbhatt, Veracity Group CEO, said, "The rupee for the day ended near yesterday's close slightly on a weak note at 63.57 taking cues from strong dollar index". Though for the day exporters were seen selling dollar which saved the rupee from falling further as local equities closed down by over 1%.
The trading range for the Spot USD/INR pair is expected to be within 63.20 to 64.00.
In the forward market, the premium declined moderately on receivings from exporters.
The benchmark six-month premium payable in October moved down to 199-201 paise from the last weekend's level of 201-203 paise while forward contracts maturing in April 2016 also fell to 422.5-424.5 paise from 425.5-427.5 paise previously.
The Reserve Bank of India fixed the reference rate for dollar at 63.6228 and for the euro at 69.9342.
The rupee firmed up further against the pound sterling to 98.36 from the last weekend's level of 99.27 while looked up against the euro to 69.77 from 71.00 previously.
The domestic currency moved up further against the Japanese currency to 52.30 per 100 yen from 52.52 last week.