1. Indian rupee closes 11 paise lower at 66.54 against US dollar

Indian rupee closes 11 paise lower at 66.54 against US dollar

Extending losses for the second straight session, the rupee slipped by 11 paise at 66.54 against the US dollar on sustained demand for the American currency from banks and importers amidst a higher greenback overseas.

By: | Mumbai | Updated: September 11, 2015 9:45 PM
Indian rupee vs us dollar

Indian rupee vs US dollar: Forex dealers said dollar’s weakness against major currencies overseas and early gains in domestic equity markets supported the rupee. (Reuters)

Extending losses for the second straight session, the rupee slipped by 11 paise at 66.54 against the US dollar on sustained demand for the American currency from banks and importers amidst a higher greenback overseas.

Besides, persistent foreign capital outflows affected the rupee sentiment.

The local currency resumed higher at 66.34 as against yesterday’s level of 66.43 at the Interbank Foreign Exchange (Forex) market and moved up further to 66.32 on initial selling of dollars by banks and exporters.

However, it washed out initial gains and dropped to 66.58 before concluding at 66.54, showing a loss of 11 paise, or 0.16 per cent.

The rupee has dropped 13 paise, or 0.19 per cent, in the two trading sessions.

It hovered in a range of 66.32 and 66.58 during the day.

According to forex dealers, the US dollar’s strength will keep the rupee under pressure as investors are expected to trade cautiously and square off their positions ahead of the weekend.

The dollar index was up by 0.10 per cent against a basket of six currencies in the afternoon trade.

In the global market, the dollar extended gains against the Japanese yen for the third session but was mostly range-bound ahead of next week’s highly anticipated Federal Open Market Committee meeting.

The Federal Reserve policy-makers are set to begin their next two-day meeting on Wednesday. Some market strategists and economists believe they could vote to raise interest rates next week, while others expect them to hold off.

Meanwhile, the benchmark BSE Sensex gained 11.96 points, or 0.05 per cent, to close at 25,610.21.

In forward market today, the premium for dollar dropped further on sustained receivings from exporters.

The benchmark six-month premium payable in February declined to 195.5-197.5 paise from 199-201 paise yesterday and far forward August 2016 also fell to 406.5-408 paise from 414-416 paise.

The RBI fixed the reference rate for the dollar at 66.3866 and for the euro at 74.8974.

The rupee also dropped further against the pound sterling to close at 102.59 as against 102.32 yesterday and also moved down further against the euro to 74.93 from 74.34.

It dropped against the Japanese currency to finish at 55.14 per 100 yen as against 54.81 yesterday.

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