Free Press Journal

Rupee closes 6 paise lower at 65.73 against US dollar


Rupee up

Mumbai: The rupee ended lower by six paise at 65.73 against the US dollar today on fresh demand for the American currency from banks and importers on the back of higher greenback in overseas markets. However, foreign capital inflows into the equity markets restricted the rupee’s fall against the dollar, forex dealers said. The rupee opened sharply lower at 65.88 as against last Friday’s level of 65.67 at the Interbank Foreign Exchange (forex) market.

It moved in a range of 65.8850 and 65.6150 before ending at 65.73, showing a loss of six paise or 0.09 per cent. The rupee had gained 79 paise, or 1.19 per cent, in the last session. The dollar index was trading higher by 0.10 per cent against a basket of six currencies in the global market.

In the Asian market, the greenback jumped against its major rivals, with some analysts giving credit to bets that the Federal Reserve will raise interest rates in December, even after standing pat this month. Oil prices rebounded in Asia trade, but analysts said they remain weighed down by an over-supply and fresh worries about the world economy after the Federal Reserve decided last week against raising interest rates.

Meanwhile, the benchmark BSE Sensex declined by 25.93 points, or 0.10 per cent, to settle at 26,192.98.

Veracity Group CEO Pramit Brahmbhatt said, “Not much movement was seen in the USD/INR currency pair. The rupee continued to trade in a thin range. “Local equities traded low and ended the day on a weak note which forced the rupee to depreciate.”

The trading range for the Spot USD/INR pair is expected to be within 65.20 to 66.20. In forward market today, premium for dollar declined on fresh receivings from exporters. The benchmark six-month premium payable in February fell to 188.5-190.5 paise from the last Friday’s level of 190.5-192.5 paise and far forward August 2016 contracts also moved down to 404-406 paise from 406-408 paise previously.

The RBI fixed the reference rate for the dollar at 65.7531 and for the euro at 74.3799. The rupee recovered against the pound sterling to close at 102.09 as against Friday’s level of 102.58 and also firmed up against the euro to 74.00 from 75.04 in the last session. The rupee also gained against the Japanese currency to 54.53 per 100 yen from 55.11 in the previous session.