Rupee ends 26 paise lower against dollar

The rupee on Thursday dropped 26 paise to close at 60.16 against the dollar on fresh dollar demand from banks and importers in view of the U.S. currency gaining in overseas markets and weakness in local equities.

Forex dealers, however, said foreign capital inflows seemed persisting and this capped the rupee’s fall.

At the Interbank Foreign (Forex) market, the local unit commenced lower at 59.95 a dollar from last close of 59.90.

It dropped further to a low 60.28 before ending at 60.16, a loss of 26 paise or 0.43 per cent from its previous end.

“The rupee marked its losses against the dollar today, doing away with its gaining streak witnessed in the past few sessions. The global strength in the dollar index ahead of the key US service PMI numbers weighed down the gains of majority of the EM currencies,” said Abhishek Goenka Founder and CEO, India Forex Advisors.

The local unit had gained 41 paise or 0.68 per cent in the precious two trading sessions. Sustained capital inflows into stocks and debts had helped the local currency to trade above 59-level for the first time in eight months on March 28.

The dollar index on Thursday was up by 0.11 pct against a basket of six major global units.

In the New York market, the dollar rose against the euro yesterday after the U.S. private sector added the most jobs in three months, setting the stage for Friday’s broader read on employment and its implications for rate hikes next year.

Meanwhile, the benchmark BSE Sensex finished lower by 42.42 points after scaling historic high in early trade.

The benchmark six-month premium payable in September dropped to 249-251 paise from 258.5-260.5 paise previously.

Far forward contracts maturing in March, 2015 also tumbled to 497.5-499.5 paise from 509.5-511.5 paise.

The Reserve Bank of India fixed the reference rate for dollar at 60.12 and for the euro at 82.74.

The rupee remained weak against the pound at 99.84 from last close of 99.69 and also moved down to 82.77 per euro.

It fell to 57.90 per 100 Japanese yen from last level of 57.77.