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Rupee falls 26 paise on fresh dollar demand

The rupee fell by 17 paise to 62.58 against the US dollar in early trade on Monday at the Interbank Foreign Exchange due to rise in the American currency's value against other global currencies amid month-end demand for the dollar from importers.

business Updated: Mar 31, 2015 02:09 IST
rupee dollar trade foreign exchange forex

The rupee ended lower by 26 paise at 62.67 against the US currency due to renewed month-end demand from importers for the dollar.

Fresh capital outflows and dollar gains in overseas markets also weighed on the rupee, while strong rebound in local equities restricted the rupee's fall, a dealer said.

At Interbank Foreign Exchange (Forex) market, the domestic currency resumed weak at 62.55 per dollar from previous close of 62.41 and moved in a range of 62.6900 and 62.5225 before concluding at 62.67, a fall of 26 paise or 0.42%.

On Friday, it had gained 26 paise or 0.41%.

Dollar buying by importers, mainly oil refiners, to meet their month-end requirements affected the rupee value.

The dollar index, a gauge of six major global rivals, was up by 0.46% in the late Asian trade on Monday.

The dollar was slightly better against the yen and euro in Asian trade, with many market participants avoiding strong positions ahead of key data including the US labour data slated for later this week.

The BSE Sensex ended higher by 517 points after eight days of sluggish trend on the back of firm Asian cues.

FPIs sold shares worth Rs 320.52 crore last Friday, as per provisional data.

Meanwhile, oil prices eased in Asia, but analysts said losses were tempered by supply concerns in the crude-rich Middle-East after Saudi-led warplanes struck rebel targets in Yemen.

The US benchmark West Texas Intermediate for May delivery fell 71 cents to $48.16 and Brent crude for May eased 35 cents to $56.06 in late-morning trade.

In the forward market, premia declined on sustained receipts by exporters.

The benchmark six-month premium payable in September dropped further to 235.5-237.5 paise from the last week's level of 253.5-255.5 paise and forward contracts maturing in March 2016 also moved down further to 453-455 paise from 471.5 -473.5 paise.

The Reserve Bank of India fixed the reference rate for dollar at 62.6305 and for the euro at 68.0606.

The rupee firmed up further against the pound sterling to 92.68 from 92.97 and also moved up against yen to 52.29 per 100 yen from 52.32.

However, it declined against the euro to 67.93 from 67.74 on Friday.

First Published: Mar 30, 2015 09:36 IST