The rupee ended lower by 13 paise at 63.52 against the US dollar on fresh demand for the American currency from banks and importers on a higher greenback in the overseas market amidst fall in crude oil prices.
However, strong equity market restricted the rupee’s fall to some extent, forex dealers said.
Oil prices fell in Asian markets today as Iran and major western powers said they are closer than ever to a landmark nuclear deal that would lift sanctions and see Tehran’s crude exports return to global markets.
The rupee resumed lower at 63.44 as against the last weekend’s level of 63.39 at the Interbank Foreign Exchange (Forex) market and hovered in a range of 63.40 and 63.53 before finishing at 63.52, showing a loss of 13 paise, or 0.21 per cent.
The dollar index was trading higher by 0.42 per cent against its major global rivals today.
The euro traded mixed against its major rivals in the Asian market after Greece reached a long-awaited bailout deal.
After overnight talks, European Council president Donald Tusk said Eurozone leaders unanimously reached an agreement to unlock more funding for debt-burdened Greece.
The agreement eases the risk that Greece will be forced to leave the euro in a “Grexit”.
Meanwhile, the benchmark BSE Sensex ended higher by 299.79 points, or 1.08 per cent, at 27,961.19.
Veracity Group CEO Pramit Brahmbhatt said, “The rupee continued to trade range bound today, but the strong dollar forced it to depreciate 13 paise for the day to close at 63.52.”
Investors preferred to stay away from the currency market and did not support the rupee movement even after the positive closing of local equities, he added.
The trading range for the spot USD/INR pair is expected to be within 63.20 to 63.80.
In the forward market, the premium for dollar declined further on mild receipts by exporters.
The benchmark six-month premium payable in December moved down to 209.5-211.5 paise from the last weekend’s level of 210-212 paise and far-forward contracts maturing in June, 2016 also moved down to 433-434 paise from 433-435 paise.
The RBI fixed the reference rate for the dollar at 63.46 and for the euro at 70.69.
The rupee fell further against the pound sterling to end at 98.79 from 98.48 previously while recovered against the euro to 70.33 from 70.91.
It dropped against the Japanese currency to end at 52.83 per 100 yen as compared to 51.84.