Erasing its early gains, rupee on Monday continued its downward journey for the straight fourth session and settled with a decline of 6 paise against the U.S. currency on late dollar demand from importers despite firm local equities.
Forex dealers attributed the initial rise in the rupee value to dollar selling by exporters amid recovery in local stocks.
Strong dollar overseas too weighed heavy on the rupee, they added.
Meanwhile, the benchmark Sensex on Monday closed higher by 143.75 points or 0.76 per cent on good Q3 results by some banking majors but could not able to stem the rupee fall.
At the Interbank Foreign Exchange (Forex) market, the domestic unit opened higher at 45.57/58 a dollar from previous close of 45.62/63 and touched the day’s high of 45.52.
However, late month-end dollar demand from importers, mainly oil refiners, later kept the rupee under pressure and it fell back to finish at 45.68/69.
The dollar index of six major currencies was also trading up by 0.29 per cent in Europe on Monday.
Foreign Institutional Investors (FIIs) sold shares worth over $754 million this month till January 21.
The global crude oil was trading above $88 a barrel in Asian trade today as investors awaited the outcome of a Federal Reserve meeting this week, analysts said.
However, according to market participants the apex bank might hike key interest rates in Tuesday’s quarterly policy setting meeting to contain the rising inflation.
The rupee premium for the forward dollar recovered slightly on fresh paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in June closed up at 126-128 paise from 125-127 paise previously.
Far-forward contracts maturing in December also ended higher at 250-252 paise from last Friday’s close of 245-247 paise.
The Reserve Bank of India has fixed the reference rate for the dollar at Rs. 45.58 and the euro at Rs. 62.01.
The rupee fell back to Rs. 72.79/81 against the pound sterling from last weekend’s close of Rs. 72.53/55 and also reacted downwards against the yen to Rs. 55.13/15 per 100 yen from Rs. 55.07/09 previously.
It, however, remained weak to Rs. 61.90/92 per euro from its last close of Rs. 61.71/63.
