Indian rupee falls 27 paise to 62.41 on month-end US dollar demand

Nov 28 2013, 18:45 IST
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The Indian rupee resumed lower at 62.38 per dollar from the previous closing level of 62.14 at the interbank foreign exchange market. Reuters The Indian rupee resumed lower at 62.38 per dollar from the previous closing level of 62.14 at the interbank foreign exchange market. Reuters
SummaryThe Indian rupee resumed lower at 62.38 per US dollar from the previous closing level of 62.14.

The Indian rupee fell for the first time in five days and ended 27 paise lower at 62.41 against the US dollar today on month-end demand from oil importers for the US currency, which strengthened in the overseas market.

The Indian rupee resumed lower at 62.38 per dollar from the previous closing level of 62.14 at the interbank foreign exchange market. It firmed up to 62.26 before ending at 62.41, a loss of 27 paise or 0.43 per cent.

The rupee had climbed to a three-week high of 62.14 yesterday.

There was strong dollar demand from oil refineries. Global crude oil prices fell to a six-month low on a surge in US stockpiles.

In New York, the dollar jumped to a six-month high against the Japanese yen yesterday. The US currency strengthened ahead of the Thanksgiving Day holiday as data showed unemployment claims dropped and consumer sentiment rose.

"Month-end oil-related dollar demand kept rupee under pressure, though local equities traded positively," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).

The 30-share benchmark Sensex rose 114.65 points, or 0.56 per cent, to 20,534.91. Overseas investors sold a net Rs 48.53 crore of shares yesterday, according to provisional stock exchange data.

"Going ahead, tomorrow's GDP and fiscal deficit data from India will be keenly watched by the markets," said Abhishek Goenka, CEO of India Forex Advisors.

Forward dollar premiums were mixed on alternate bouts of buying and selling transactions.

The benchmark six-month forward dollar premium payable in April declined to 225-227 paise from 227-229 paise previously while far-forward contracts maturing in October inched up to 467-469 paise from 466-468 paise.

The RBI fixed the reference rate for the dollar at 62.3896 and for the euro at 84.7547.

The rupee fell to 102.02 against the pound from 101.31 yesterday and moved down to 84.84 against the euro from 84.49 previously.

It advanced against the Japanese yen to 61.03 per 100 yen from the last close of 61.06.

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