Snapping its four-day winning spree against the American currency, the rupee today fell by 25 paise to 65.05 on fresh dollar demand from banks and importers despite persistent foreign capital inflows.
The domestic currency opened sharply lower at 64.95 as against yesterday’s level of 64.80 at the Interbank Foreign Exchange (forex) market.
It hovered in the range of 64.86 and 65.06 during the day before finishing at 65.05 per dollar, showing a loss of 25 paise or 0.39 per cent.
The rupee had gained by 38 paise or 0.57 per cent in previous four days.
Pramit Brahmbhatt, Veracity Group CEO, said, “Today the rupee fell for the first time in five days due to importers buying. The rupee traded in a thin range however depreciates by twenty five paise for the day and closed at 65.05. Today local equities sell off forced rupee to close in red however dollar index is trading down which cap the gain for dollar.
The trading range for the Spot USD/INR pair is expected to be within 64.75 to 65.40.
“Fall in commodity and energy prices after yesterday’s China GDP data has dampened sentiment a bit amid global growth concerns, a forex dealer said.
The dollar index was traded down by 0.29 per cent in the late afternoon trade as against a basket of six currencies.
Overseas, the dollar gave back some of its overnight gains against the euro today after marking a 10-day high ahead of this week’s European Central Bank meeting, which some investors believe could set the stage for additional stimulus later this year.
Meanwhile, the benchmark BSE Sensex fell by 58.09 points or 0.21 per cent. In forward market today, premium for dollar eased further on sustained receivings from exporters.
The benchmark six-month premium payable in March moved down further to 185.5-186.5 paise from 187-189 paise yesterday and far forward Sept 2016 also eased to 399-400 pasie from 400-402 paise.
The RBI fixed the reference rate for the dollar at 64.8908 and for the euro at 73.5213.
The rupee fell further against the pound sterling to finish at 100.66 from 100.32 previously and also dropped further against the against the euro to 73.99 from 73.40.
The domestic currency ended lower against the Japanese currency to close at 54.39 per 100 yen from 54.20.