Extending losses for the fourth straight session, the rupee dropped further by 7 paise to 66.87 on fag-end dollar demand from banks and importers on the back of higher crude prices amid firm domestic equities.
The rupee resumed higher at 66.74 per dollar as against the yesterday’s closing level of 66.80 at the Interbank Foreign Exchange market and firmed up to 66.67 on initial dollar selling by banks and exporters on the back of persistent rise in equity market.
However, it washed out initial gains following fresh dollar demand from banks and importers on the back of firm crude oil prices and dropped to 66.8850 before ending at 66.87, showing a loss of 7 paise or 0.10 per cent.
It has lost 31 paise or 0.47 per cent in four days.
The domestic currency hovered in a range of 66.67 and 66.8850 per dollar during the day.
The dollar was flat against the yen in range—bound Asian trade, with investors in wait—and—see mode before coming economic data and events this week.
Meanwhile, the Australian dollar advanced after the Australian central bank’s latest meeting minutes damped hopes for an early rate reduction.
Meanwhile, the RBI fixed the reference rate for the dollar at 66.7233 and euro at 75.4907.
In cross-currency trades, the rupee dropped against the pound sterling to finish at 96.81 from 95.99 on Monday
It also moved down against the euro to 75.70 from 75.62.
However, the domestic currency firmed up against the yen to 61.07 per 100 yens from 61.32 previously.
Pramit Brahmbhatt of Veracity Financial Services said, .
“Taking cues from domestic equity market, the rupee opened with a gain compared to previous close of 66.80/USD. Stronger rupee opening was also on back of weak dollar index.
“Our benchmark index Nifty continued to trade higher for the day and closed with a gain of 30 points at 7,891 levels. A late buying in dollar forced the rupee to depreciate for the day and the rupee closed with a loss of 7 paise at 66.87/USD.”
Trading range for the spot USD/INR pair will be 66.50 to 67.10/USD.
Meanwhile, Brent crude pushed towards USD 50 a barrel in Asia, boosted by supply disruptions from the escalating Canadian wildfires and armed attacks against oil facilities in Nigeria.
In forward market, premium for dollar dropped further on persistent receivings from exporters.
The benchmark six-month premium for October moved down further to 191-193 paise from 193.5-195.5 paise yesterday and far—forward April 2017 contract also dropped to 395-397 paise from 399.5-401.5 paise.
