Rupee ends 5 paise lower to close 65.64 against US dollar
The rupee declined by 5 paise to close at one-month low of 65.64 against the US dollar on Tuesday, largely on fag-end demand for the American currency from banks amidst sustained foreign capital outflows.business Updated: Nov 03, 2015 19:21 IST
The rupee declined by 5 paise to close at one-month low of 65.64 against the US dollar on Tuesday, largely on fag-end demand for the American currency from banks amidst sustained foreign capital outflows.
The local unit opened higher at 65.48 against Monday’s level of 65.59 at the Interbank Foreign Exchange (Forex) market and firmed up further to a high of 65.41 on initial selling of dollars by banks and exporters on weakness of greenback in overseas market.
However, it washed out initial gains gains and dropped to 65.7125 on fag-end dollar demand from banks before settling at one-month low at 65.64, showing a loss of five paise or 0.08%.
The domestic currency has dropped 37 paise, or 0.57%, in two days.
The rupee had last ended at 65.96 on September 29, 2015.
It hovered in the range of 65.7125 and 65.41 during the day.
The dollar index traded higher by 0.26 per cent against a basket of six currencies.
“The impending US data will have direct impact on the December FOMC decision and can result in increased market volatility,” a forex dealer said.
Oil prices rebounded in Asia, buoyed by bargain hunting ahead of the release of US government data that will gauge crude demand in the world’s biggest economy.
Meanwhile, the benchmark BSE Sensex ended higher by 31.44 points or 0.12%, at 26,590.59.
Veracity Financial Services CEO Pramit Brahmbhatt said, “The rupee recovered on fresh selling of dollar by exporters as well as positive opening in domestic equity market.
“However, buying by importers on lower levels hampered the pace.”
In Tuesday’s forward markets, premium for dollar eased further on good receivings from exporters.
The benchmark six-month premium payable in April eased further to 209.5-211 paise from 210-212 paise previously and far forward October 2016 contract also moved down to 418-419.5 paise from 419-421 paise.
The RBI fixed the reference rate for the dollar at 65.4510 and for the euro at 72.1008.
The rupee recovered against the pound sterling to finish at 101.22 from 101.47 previously and also recoupled against the euro to 72.09 from 72.24.
The domestic currency also firmed up against the Japanese unit to 54.32 per 100 yen from 54.38.