The rupee today slipped 12 paise to end at 44.45/46 against the U.S. currency due to fag—end dollar demand on the back of a weak equity market.
The rupee moved in a range of 44.25 and 44.46 during the day.
Dealers said that the rupee failed to maintain its initial gains and declined due to tail—end dollar demand from banks and importers amid weak domestic equities.
The Bombay Stock Exchange benchmark Sensex fell sharply by 295.65 points or 1.53 per cent to finish at 19,091.17.
Meanwhile, Crude oil prices dipped in Asian trade today as traders booked profits after gains last week, analysts said. New York’s main contract, light sweet crude for delivery in May fell 70 cents to USD 108.96 a barrel.
Alpari Forex (India) CEO Pramit Brahmbhatt said USD/INR witnessed a flat opening at 44.36.
“Indian rupee after early gains traded weak as the local shares dropped down by more than one and half per cent taking cues from euro which made a 10 day low against dollar. Levels to watch for USDINR spot will be 44.50.” he said.
At the Interbank Foreign Exchange (Forex) market, the domestic currency opened barely steady at 44.34/35 per dollar as against the last weekend’s level of 44.33/34 but firmed up immediately to 44.25 per dollar on sale of dollars by banks and corporates on hopes of capital inflows from foreign funds.
However, it failed to maintain initial gains due to fag—end dollar demand from importers and some banks to finish at 44.45/46 due to sharp fall in equity shares.
The rupee premium for the forward dollar closed steady to better on stray paying pressure from banks and corporates. The benchmark six—month forward dollar premium payable in September finished stable at 148—150 paise.
Far—forward contracts maturing in March, however, edged up to 302—304 paise from 300—302 paise previously.
The Reserve Bank of India has fixed the reference rate for the dollar at Rs 44.27 and the euro at Rs 63.66.
The rupee moved up to Rs 72.34/36 against the pound sterling from last Friday’s close of Rs 72.47/49, while shot up further against the euro to end at Rs 63.50/52 from Rs 64.12/14 previously.
It, however, remained weak against the Japanese yen to Rs 53.66/68 per 100 yen from its last close of Rs 53.28/30.
