The rupee extended its fall for the fourth consecutive day by losing another 6 paise to hit a fresh one-month low of 62.31 on persistent demand for the American currency from banks and importers in view of sustained foreign capital outflows.
Higher dollar in New York also affected the rupee sentiment in the forex market.
The Indian currency resumed lower at 62.39 per dollar as against the yesterday’s close of 62.25 at the Interbank Foreign Exchange (Forex) market here.
It further dropped to Rs 62.47 on heavy bouts of dollar demand from dealers and importers before ending at one-month low of 62.31, showing a loss of six paise.
The local currency ended at 62.32 per dollar on Jan 9, 2015. It has dropped by 62 paise or 1.01 per cent in the last four days.
The rupee hovered in a range of 62.47-62.20 per dollar during the day.
Pramit Brahmbhatt, CEO at Veracity Group, said, “To start the day Indian Rupee depreciated and fell to one-month low against the dollar as rising speculation over the chances of a US rate cut is picking up and is reducing the demand for Indian assets.”
Towards the end, the domestic unit tried to recover with the help of strong local equities and managed to close at 62.31, he added.
The trading range for the Spot USD/INR pair is expected to be within 61.90 to 62.70.
In the New York market, the US dollar firmed up against its major rivals in early trade as Eurozone ministers failed secure a new debt agreement with Greece after a marathon meeting.
Meanwhile, the benchmark BSE Sensex ended higher by 271.13 points, or 0.95 per cent, to 28,805.10.
The forward premia dropped on fresh receiving by exporters.
The benchmark six-month premium payable in July fell to 210-212 paise from 216.5-218.5 paise previously while forward contracts maturing in
January 2016 also moved down to 417.5-419.5 paise from 424.5-426-5 paise.
The Reserve Bank of India fixed the reference rate for dollar at 62.4300 and for Euro at 70.6333.
The rupee dropped further against the pound to 95.56 per pound from 95.16 per pound previously and fell against the euro to 70.63 per euro from 70.31.
It also fell against the yen to 52.02 per 100 yen from 51.92 yesterday.