The rupee today depreciated by 14 paise to close at nearly a two-week low of 44.86/87 against the US currency following good dollar demand.
Dealers said that good dollar demand from importers and some banks mainly put pressure on the rupee.
Weakness in Asian currencies coupled with lack of any trigger from local stocks too, weighed on the rupee sentiment, they added.
The Bombay Stock Exchange benchmark Sensex today recovered its initial losses and closed nearly stable.
Meanwhile, New York crude oil was trading above U.S. $98 a barrel in European market today.
Alpari Forex (India) CEO Pramit Brahmbhatt said, “Globally dollar gained against the major currencies in Asian markets and local equities also traded weak which depreciated the Rupee against the dollar.” “USD/INR pair is expected to break the resistance of 45.00 in coming days and the trading range for the USD/INR will be 44.70 to 45.20 tomorrow,” he added.
India Forex Advisors, CEO, Abhishek Goenka said, “The Indian rupee may further depreciate up to 45.00-45.10 levels“.
“The Rupee tracked loosing stock market throughout the day and major Asian currencies closed weak for the day, Asian currencies and Euro traded in very narrow range as Australia and Europe markets were closed today,” he commented.
At the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 44.86/87 a dollar from previous close of 44.72/73 and was trapped in a very narrow range of 44.80 - 44.91 before concluding at 44.86/87.
The dollar extended its gains in New York last Friday, with the euro falling 1 per cent as European political and monetary officials clashed on how to resolve Greece’s debt problems.
However, the dollar index was down by over 0.2 per cent against a basket of currencies.
The rupee premium for the forward dollar fell back on fresh receivings by exporters. The benchmark six-month forward dollar premium payable in November finished down at 132-134 paise from 136-1/2-138-1/2 paise last weekend.
Far-forward contracts maturing in May also settled lower at 248-250 paise from 256-258 paise previously.
The RBI has fixed the reference rate for the dollar at Rs 44.87 and the euro at Rs 64.37.
The rupee reacted downwards against the pound sterling to end at Rs 73.20/22 from last Friday’s close of Rs 72.88/90 and also fell back against the Japanese yen to Rs 55.90/92 per 100 yen from Rs 55.83/85 previously.
It, however, rebounded to Rs 64.51/53 per euro from last close of Rs 65.38/40.