The rupee on Friday fell 30 paise to end at one-month low level of 54.22 against the American currency on fag-end dollar demand from banks and importers, amid weakness in local stock market.
Rupee resumed marginally higher at 53.91 per dollar as against the last closing level of 53.92 at the Interbank Foreign Exchange (Forex) Market. However, it fell to 54.24 a US dollar on fag-end US currency demand from banks and importers, before ending at one-month low of 54.22 — a fall of 30 paise or 0.56%.
This was the lowest closing since 54.39 on January 17. The rupee hovered in a range of 53.85-54.24 per US dollar during the day.
“The rupee was seen depreciating above 54 levels and it has breached our target of 54.20 as well. This is the second consecutive weak closing given by rupee on weekly basis," said Abhishek Goenka, Founder & CEO, India Forex Advisors.
In London market, the yen rose today as the Group of 20 struggled to find a common stance on recent currency moves, and fears over global growth hit shares and commodities.
Crude oil prices were mixed in volatile Asian trade today as weak economic growth in Europe offset data showing buoyant employment growth in the United States, analysts said.
Persistent capital inflows from foreign funds into equity market restricted the rupee's fall, a forex dealer said.
In stock markets, the benchmark indices Sensex and Nifty closed the session on a negative note taking cues from global weakness in the markets and sell-off in the largecap stocks on tepid third quarter earnings.
All eyes are fixed on the two day G-20 meet which starts from Friday, said brokers. Meanwhile, the premium for the forward dollar ended steady to better on stray payments from banks and corporates.
The benchmark six-month forward dollar premium payable in July ruled unchanged at 173-1/2-175-1/2 paise. Far-forward contracts maturing in January moved up to 337-339 paise from yesterday's closing level of 336-1/2- 338-1/2 paise.
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