After a brief pause, the rupee today declined by six paise to close at 67.84 against the American currency on fag-end dollar demand from banks and importers ahead of the RBI policy meet tomorrow.
The domestic unit resumed slightly higher at 67.77 per dollar as against last Friday’s closing level of 67.78 at the Interbank Foreign Exchange (Forex) market and moved up further to 67.63 on initial selling of the American currency by banks and exporters on good foreign capital inflows into equities.
However, it dropped afterwards to 67.87 before ending at 67.84, showing a loss of 6 paise or 0.10 per cent on fag-end dollar demand from banks and importers.
The domestic unit had gained by 45 paise or 0.66 per cent on last Friday.
The domestic unit hovered in a range of 67.63 and 67.87 during the day.
The dollar index was down 0.24 per cent against a basket of six currencies in late afternoon trade.
Globally, the yen weakened against the US dollar and euro in the late Asian trade today, as the market continued to feel the heat from the Bank of Japan’s move to adopt negative interest rates Friday.
Pramit Brahmbhatt of Veracity Financial Services said, “Taking cues from domestic equity market, the rupee opened on a positive note as Nifty too opened with a gain. But as day progressed we saw rupee depreciating on back of dollar demand. Our bench mark index Nifty closed with a nominal loss of 8 points ahead of RBI’s monetary policy.”
Thus the rupee closed with a loss of 6 paisa at 67.84 levels. Trading range for spot USD/INR pair is expected to be within 67.5 to 68 levels.
Meanwhile, the benchmark BSE Sensex ended lower by 45.86 points or 0.18 per cent.
In forward market, premium for dollar eased further on sustained receivings from exporters.
The benchmark six-month premium payable in July moved down to 204-206 paise from 205-207 paise on last Friday while far forward January 2017 contract closed unchanged at 410-412 pasie.
The RBI fixed the reference rate for the dollar at 67.6728 and for the euro at 73.4115.
In cross-currency trades, the rupee firmed up further against the pound sterling to end at 96.90 from 96.97 on last Friday and the euro also moved up further to 73.69 from 73.99.
The domestic unit moved up further against the yen to 55.92 from 56.07 per 100 yen.