Rupee down 30 paise at 61.35 against US dollar
Snapping a four-day gaining spree, the rupee on Friday fell by 30 paise to close at 61.35 against the dollar on fresh demand for the US currency from banks and importers due to firm dollar overseas and sharp fall in local equities.business Updated: Oct 10, 2014 21:21 IST
Snapping a four-day gaining spree, the rupee on Friday fell by 30 paise to close at 61.35 against the dollar on fresh demand for the US currency from banks and importers due to firm dollar overseas and sharp fall in local equities.
The local currency rupee resumed lower at 61.15 per dollar as against Thursday's closing level of 61.05 at the Interbank Foreign Exchange (Forex) and dropped further to 61.36 per dollar before concluding the day at 61.35 per dollar, a loss of 30 paise or 0.49%. It had gained by 70 paise, or 1.13%, in the last four days.
It moved in a range of 61.11 and 61.36 per dollar during the day.
"Rupee traded weak on Friday, taking cues from strong dollar overseas and weak local equities. After depreciating for four continuous weeks, rupee posted its first weekly gain this week," said Pramit Brahmbhatt, CEO, Veracity Group.
Meanwhile, foreign portfolio investors (FPIs) continued pulling out from domestic markets and sold shares worth Rs 719.77 crore on Friday.
In New York, the US dollar traded higher against its major rivals on Thursday trade after the eye-catching plunge in German exports raised fears of a recession in Europe's largest economy.
Crude oil prices fell to a two-year low in the Asian trade as weak economic data from Germany underscored concerns over a global economic slowdown and its impact on energy demand.
In Tokyo's market, the dollar steadied against the euro and yen on Friday, though lower US yields capped its rebound after the Federal Reserve's dovish undertones sapped the Greenback's recent strength.
The BSE benchmark Sensex dropped sharply by 339.90 points 1.28% to finish at 26,297.38.
In the forward market, premium ended lower on persistent receipts by exporters.
The benchmark six-month premium payable in March closed lower at 221-223 from Thursday's closing level of 224-226 paise and far-forward contracts maturing in September, 2015 also ended lower at 452-454 as against 461.5-463.5 paise.
The Reserve Bank of India fixed the reference rate for dollar at 61.1624 and for the euro at 77.6701.
The rupee recovered against the pound sterling to 98.50 from the previous close of 98.98 and also firmed up to 77.65 per euro from 77.95 previously.
However, it fell to 56.93 per 100 yen from 56.71 on Thursday.