Mumbai: The rupee ended marginally lower by two paise at 63.41 against the US dollar on fag-end demand for the American currency from banks and importers on a higher greenback in overseas markets.
However, good foreign capital inflows restricted the rupee’s fall against the dollar, forex dealers said. The rupee resumed higher at 63.36 as against yesterday’s closing level of of 63.39 at the Interbank Foreign Exchange (Forex) market and moved up further to 63.35 on initial selling of dollars by banks and exporters.
However, it failed to maintain its gains on fresh dollar demand from banks and importers and dropped to 63.44 before ending at 63.41, showing a marginal loss of two paise, or 0.03 per cent.
It hovered in a range of 63.35 and 63.44 per dollar during the day. The dollar index was trading higher by 0.05 per cent against its major global rivals today. Forex dealers are keenly waiting for the US Fed Chair Janet Yellen’s two-day testimony before the US Congress and voting on reform measures by the Greek Parliament, both scheduled later in the day.
In the New York market, the dollar fell against nearly all of its main rivals yesterday after US retail sales declined in June for the first time in four months. Meanwhile, oil prices rose in Asia today on easing concerns over the impact of the expected flood of Iranian supplies in the global market following the country’s historic nuclear deal.
US benchmark West Texas Intermediate for August delivery rose 26 cents to USD 53.29 and Brent crude for August climbed 10 cents to USD 58.61 a barrel in late morning trade. The benchmark BSE Sensex today rose by 265.39 points, or 0.95 per cent, to settle at 28,198.29.
Veracity Group CEO Pramit Brahmbhatt said, “Rupee traded range-bound today as investors preferred to stay away from the currency market and did not support the rupee movement even after the positive closing of local equities.” The trading range for the spot USD/INR pair is expected to be within 63.00 to 63.80, he added.
In the forward market, the premium for dollar declined further on sustained receipts by exporters. The benchmark six-month premium payable in December moved down to 207-209 paise from 208-210 paise yesterday and far-forward contracts maturing in June, 2016 closed steady at 431-433 paise.
The RBI fixed the reference rate for the dollar at 63.38 and for the euro at 69.68. The rupee declined against the pound sterling to end at 99.10 from 98.76 previously and firmed up further against the euro at 69.86 from 69.90 in the previous session.
It also moved up against the Japanese currency to end at 51.32 per 100 yen as compared to 51.38 in earlier session.