Indian rupee ends 5 paise lower at 62.36 against US dollar

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The Indian rupee fell five paise to 62.36 against the US dollar today on fresh demand from banks and importers for the US currency, which strengthened overseas. Reuters The Indian rupee fell five paise to 62.36 against the US dollar today on fresh demand from banks and importers for the US currency, which strengthened overseas. Reuters
SummaryThe Indian rupee fell five paise to 62.36 against the US dollar on fresh demand from banks and importers.

The Indian rupee fell five paise to 62.36 against the US dollar today on fresh demand from banks and importers for the US currency, which strengthened overseas.

Narrowing of the current account deficit in the second quarter wasn't enough to lift sentiment as local stocks turned weak and the RBI said yesterday the entire dollar demand of oil marketing companies had returned to the forex market.

The rupee opened at 62.30 per dollar as against the previous close of 62.31 at the interbank foreign exchange market. It dropped to 62.44 on fresh dollar demand from importers before ending at 62.36, a loss of five paise or 0.08 per cent.

India's current account deficit narrowed to USD 5.2 billion, or 1.2 per cent of GDP, in July-September, the Reserve Bank of India said yesterday.

The central bank said the entire dollar demand of oil marketing companies came back to the market last week. A special swap window that had been made available to the oil companies since August end would open on rare days when there is a spurt in dollar demand.

In the global market, the dollar rallied against all major currencies, buoyed by strong US macro economic data amid expectations the Federal Reserve would soon scale back its bond-buying programme.

A gauge of US manufacturing beat expectations and expanded at the fastest rate in more than two years.

In New York, the dollar jumped against the yen yesterday as Treasury yields rose.

The benchmark 30-share Sensex fell 43 points or 0.21 per cent to 20,854.92. Overseas investors bought a net Rs 790.97 crore of shares yesterday, according to provisional stock exchange figures.

In the forward market, the dollar premium remained weak due to sustained receipts from exporters.

The benchmark six-month forward dollar premium payable in April declined to 209-211 paise from 213-214 paise previously and far-forward contracts maturing in October slipped to 440-446 paise from 447-449 paise.

The RBI fixed the reference rate for the dollar at 62.3443 and for the euro at 84.4570.

The rupee moved down to 102.35 per pound as against 102.06 previously and fell to 84.60 against the euro from 84.31.

The rupee also dropped to 60.71 per 100 Japanese yen from 60.64 yesterday.

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