Rupee loses 34 paise to 47.11/12 against dollar

The Indian rupee fell by 34 paise to 47.11/12 against the US dollar on Monday on sustained demand for the American currency from banks and importers amid a volatile equity market.

At the Interbank Foreign Exchange market, the domestic unit resumed lower at 47.05/06 per dollar against last weekend’s close of 46.77/78 per dollar and dropped further to 47.16 before ending at 47.11/12 per dollar.

It moved between a range of 46.99 and 47.16 per dollar during morning deals.

Forex dealers said persistent dollar buying by banks and importers mainly affected the rupee value vis—a—vis the dollar.

Oil prices dipped to USD 75.71 a barrel in Asian trade today after the sentiment was dampened by weak US economic data that spurred concerns of a slow down in demand from the world’s largest energy consumer, analysts said.

In London, the value of the euro vis—a—vis the dollar was dented by the ratings downgrade of Ireland and the suspension of talks between Hungary and the IMF, but later recovered as traders awaited results of bank stress tests.

Moody’s Investors Service downgraded Ireland’s sovereign bond rating to Aa2 with a stable outlook from Aa1.

The Indian benchmark Sensex ended lower by 27 points, or 0.15 per cent today.

The rupee premium for the forward dollar ended lower on fresh receivings by exporters.

The benchmark six—month forward dollar premium payable in December fell to 83—85 paise from 85—1/2—87—1/2 paise last Friday and far—forward maturing in June also ended lower at 147—149 paise from 150—152 paise previously.

The Reserve Bank of India fixed the reference rate for the dollar at Rs 47.08 and for the euro at Rs 60.62.

In cross currency trade, the domestic unit declined further against the pound sterling, the euro and the Japanese yen.

The rupee moved down further against the Pound Sterling to end at Rs 72.04/06 per pound from last Friday’s close of Rs 71.89/91 and dropped against the euro to Rs 61.04/06 per euro from Rs 60.75/77 previously.

It also fell against the yen to Rs 54.10/12 per 100 yen against its last close of Rs 53.90/92.