The Indian rupee ended marginally lower by three paise at 63.58 against the US dollar on mild demand for the American currency from banks and importers.
The rupee resumed lower at 63.58 as against previous closing of 63.55 at the Interbank Foreign Exchange (Forex) market and moved in a range of 63.62 and 63.51 before ending at 63.58, showing a loss of 3 paise or 0.05 per cent.
The dollar index was up by 0.09 per cent against a basket of six currencies in late afternoon trade today.
In the overseas market, the dollar lost ground against its major rivals in early trade today, slumping in particular against the pound on increased expectations for a rise in interest rates in the UK.
At the New York market, the US dollar snapped a four-day winning streak seen yesterday as investors took advantage of light trading volume to unload some of their holdings.
Meanwhile, oil prices resumed their decline in Asia today following a US report showing stockpiles surged last week, with analysts warning for further weakness ahead.
Meanwhile, the benchmark 30-share BSE Sensex today ended higher by 322.79 points or 1.15 per cent, at 28,504.93.
Veracity Group CEO Pramit Brahmbhatt said,” The rupee continued to trade range bound today also as investors preferred to stay away from the currency market and did not support the rupee movement even after the positive closing of local equities.”
The trading range for the spot USD/INR pair is expected to be within 63.20 and 64.00.
In the forward market, the premium for dollar ended mixed due to uneven demand and supply transactions.
The benchmark six-month premium payable in December moved down further to 200-201 paise from 201-202.5 paise yesterday while far-forward contracts maturing in June, 2016 inched up to 428-430 paise from 428-429 paise yesterday on mild paying pressure from corporates.
The RBI fixed the reference rate for the dollar at 63.5283 and for the euro at 69.6016.
The Indian rupee fell against the pound sterling to close at 99.41 from 98.83 yesterday and also closed lower against the euro at 69.52 as compared to 69.03 previously.
It also fell against the Japanese currency to end at 51.37 per 100 yen from 51.11 previously.