Tracking losses in the local stock market, the rupee on Thursday lost 10 paise to close at Rs. 53.92 due to renewed dollar demand driven by strengthening of the US currency overseas.
Forex dealers said, however, positive cues from easing inflation and continued foreign fund flows capped the rupee’s fall to some extent.
The local unit resumed lower at Rs. 53.85 against yesterday’s close of Rs. 53.82 per dollar at the Interbank Foreign Exchange (Forex) Market. It declined further to Rs. 53.97 before ending the day a tad better at Rs. 53.92, a loss of 10 paise, or 0.19 per cent, over the previous close. Rupee moved in a tight range between Rs. 53.81 and Rs. 53.97 during the day.
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“The rupee was seen trading range-bound amid positive domestic data and the fall in the Euro. On the international front, Euro zone’s GDP figures put pressure on the rupee,” said Abhishek Goenka (Founder and CEO, India Forex Advisors).
In New York, the US dollar trimmed its losses against the yen yesterday as investors sorted out the stance by the world’s largest industrialised economies on recent weakness in the Japanese currency.
The premium for the forward dollar declined sharply on sustained receipts by exporters.
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The benchmark six-month forward dollar premium payable in July dropped further at 173—1/2—175—1/2 paise from Wednesday’s close of 180-182 paise.
Far-forward contracts maturing in January remained weak at 336—1/2—338—1/2 paise from 344-346 paise.
The RBI fixed the reference rate for the US dollar at Rs. 53.8715 and for Euro at Rs. 72.3760. The rupee moved up further against the pound sterling to 83.60 from the last close of 83.77. However, the rupee declined further against the Japanese Yen to Rs. 57.87 per 100 yen from the previous close of Rs. 57.50.