Rupee down 51 paise on heavy dollar demand

Written by Press Trust of India | Mumbai | Updated: Dec 4 2012, 07:04am hrs
Snapping its three-session gaining streak, the rupee on Monday lost 51 paise to end at 54.77 against the US dollar due to fresh heavy demand for the American currency from importers and some banks, amid weak local equities.

Forex dealers said some capital inflows and a weak dollar overseas helped the local currency make an attempt to arrest its fall.

The rupee opened a tad lower at 54.27 from Friday's close of 54.26 at the forex market and immediately touched a high of 54.24 on initial rally in domestic stocks, amid sustained dollar selling by exporters. However, it turned negative after weakness in equities in late morning deals and declined further to a low of 54.79 before concluding at 54.77, a fall of 51 paise, or 0.94%.

In the last three sessions, rupee had gained 147 paise, or 2.64%. The decline was mainly due to domestic factors like dollar demand from oil importers and a few gold-related payments. Global factors like euro's movement against the dollar are seen moving in rupee's favour, said IDBI Bank treasury head NS Venkatesh.