Forex: In a holiday-truncated week, the rupee continued to decline against the American currency for the second consecutive week, ending lower by two paise to close at 64.83 per dollar on some dollar demand from banks and importers.
The domestic unit opened sharply higher at 64.77 as against last weekend’s level of 64.81 at the Interbank Foreign Exchange (forex) market and firmed up further to 64.73 on initial selling of dollars by banks and exporters in view of persistent foreign capital inflows.
However, it washed out its initial gains and dropped to 65.2250 on fresh dollar demand from banks and importers, before ending the week at 64.83 per dollar, showing a loss of marginal two paise or 0.03 per cent.
The domestic currency has lost 9 paise or 0.14 per cent in two weeks.
It hovered in a range of 64.7300 to 65.2250 per dollar during the week.
In the global market, US dollar posted its largest weekly gain on Friday against the euro since late May, supported by interest-rate cuts in China and the promise of more stimulus in Europe.
Foreign portfolio investors (FPIs) pumped in USD 263.11 million during the week, as per Sebi’s record.
Forex market was closed on Oct 22 for Dussehra.
Meanwhile, the Indian benchmark Sensex continued to rule firm for the fourth consecutive week by ending higher by 256.21 points or 0.94 per cent during the week. In the forward market, the premium for dollars declined further on sustained receiving from exporters.
Forward dollar premium payable in March declined to 182-184 from last weekend’s level of 189-191 paise on receipts from exporters and far-forward contract maturing in September 2016 also moved down to 396-398 paise as against 403-405 paise previously.
The RBI fixed the reference rate for the dollar at 64.88 and the Euro at 72.06, from last weekend’s level of 64.9697 and 73.9940 respectively.
The rupee rose against the pound to finish the week at 99.88 from last weekend’s level of 100.16 and gained against the euro to 71.98 from 73.60.
The domestic unit climbed against the Japanese currency to end at 53.71 per 100 yen from the last weekend’s level of 54.45.