Indian rupee softens by 2 paise Vs US dollar to end at 60.45 in dull trade

Written by PTI | Mumbai | Updated: Aug 28 2014, 03:09am hrs
The Indian rupee today edged two paise lower and ended at 60.45, near its four-week high levels, against the Greenback on dollar demand from importers.

However, bullish local equities, sustained capital inflows and a weak dollar overseas helped check the rupee fall, a forex dealer said.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced weak at 60.47 a dollar from previous close of 60.43. It moved in a tight range of 60.3925 and 60.51 before concluding at 60.45, logging a small loss of two paise or 0.03 per cent. Full Coverage: Indian rupee vs US dollar, others

Yesterday, it had risen 13 paise or 0.21 per cent to end at 60.43 -- its best closing since July 30, 2014.

Renewed dollar demand from importers, mainly oil refiners, to meet their month-end obligations weighed on the rupee value.

Meanwhile, the benchmark S&P BSE Sensex today rallied further by 117.34 points, or 0.44 per cent, to log new closing peak. Overseas investors picked up shares worth Rs 364.72 crore yesterday, as per provisional data with stock exchanges.

The dollar index was down 0.15 per cent against its six major global rivals.

Pramit Brahmbhatt, CEO, Veracity Group, said,"Rupee ended near yesterday's close. Local equities closed at all time high today. Dollar index rally slowed down today and is trading below yesterday's close at USD 82.53.

"Rupee is expected to appreciate in coming days tracking gains in local equities. The trading range for the spot rupee is expected to be within 60.00 to 60.80."

In the forward market, premium dropped further on consistent receipts by exporters.

The benchmark six-month premium payable in January dipped to 209-211 paise from overnight close of 215.5-217.5 paise.

Far-forward contracts maturing in July, 2015 also dropped to 454.5-456.5 paise from 459-461 paise.

The Reserve Bank of India fixed the reference rate for dollar at 60.4678 and for the euro at 79.6545.

The rupee fell back against the pound to 101.29 from 100.14 previously and also turned negative to end a tad lower at 58.17 per 100 Japanese yen from 58.16.

It, however, edged up further to 79.69 per euro from 79.73.