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Updated: March 12, 2014 20:48 IST

Rupee ends 28 paise lower against dollar

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A file picture of Indian currency notes. Photo: V. Sudershan.
The Hindu
A file picture of Indian currency notes. Photo: V. Sudershan.

The rupee on Wednesday lost 28 paise to close at 61.22 against the dollar due to sustained dollar demand from importers, ahead of release of key economic data later in the day.

Renewed capital inflows, stable equities and weak dollar overseas failed to stem the rupee fall, a forex dealer said.

At the Interbank Foreign Exchange (Forex) market, the local unit commenced weak at 61.10 a dollar from previous close of 60.94.

It fell to a low of 61.26 before ending at 61.22, a loss of 28 paise. This is rupee’s second straight day of losses.

On Tuesday, it ended the trade nine paise lower.

Meanwhile, the BSE benchmark Sensex on Wednesday closed higher by a mere 30 points. FIIs infused $ 250.30 million yesterday, as per SEBI data.

The dollar index, a gauge of six major global rivals, was down by 0.04 per cent.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India), said: “The rupee is expected to trade strong and appreciate in the coming days over the improved sentiment ahead of elections.”

Meanwhile, official data released after market hours showed that February retail inflation has slowed to 8.10 per cent from 8.79 per cent in January.

Industrial production grew at 0.1 per cent in January.

Meanwhile, forward dollar premium improved further on sustained paying pressure from banks and corporates.

The benchmark six-month premium payable in August edged up to 249-251 paise from 248-250 paise yesterday.

Far forward contracts maturing in February 2015 also firmed up to 489-491 paise from 484.5-486.5 paise.

The RBI fixed the reference rate for dollar at 61.09 and for the euro at 84.6545.

The rupee fell back to 101.52 against the pound from last close of 101.22. It also turned negative to end at 84.91 per euro from 84.37.

It, however, dropped further to 59.58 per 100 Japanese yen from 59.02.

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