Rupee drops by 23 paise against dollar to one-week low of 53.91

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The rupee dropped by 23 paise to settle at one-week low of 53.91 against the Greenback on heavy dollar demand from importers amid some hesitancy in local stocks. (Reuters) The rupee dropped by 23 paise to settle at one-week low of 53.91 against the Greenback on heavy dollar demand from importers amid some hesitancy in local stocks. (Reuters)
SummaryThe rupee dropped by 23 paise to settle at one-week low of 53.91 against the Greenback on heavy dollar demand from importers amid some hesitancy in local stocks.

The rupee dropped by 23 paise to settle at one-week low of 53.91 against the Greenback on heavy dollar demand from importers amid some hesitancy in local stocks.

Firm dollar overseas also weighed on the rupee, while continued foreign funds inflow in equities restricted the fall to some extent, a forex dealer said.

The rupee commenced weak at 53.85 a dollar from last Thursday's close of 53.68 at the Interbank Foreign Exchange (Forex) market and moved erratically in a narrow range between 53.75 and 53.95 before concluding at 53.91, showing a fall of 23 paise or 0.43 per cent.

The Indian benchmark Sensex today moved in a narrow breadth before finishing almost flat ahead of the Reserve Bank of India's (RBI) third quarter monetary policy tomorrow.

Month-end dollar from importers affected the rupee sentiment.

The dollar index, a gauge of six major global currencies, was up by 0.12 per cent.

After appreciating for the last couple of sessions, rupee started depreciating against the US dollar today. Rupee was seen weakening despite the strong recovery in the euro. The month end demand for dollars from the importers is putting some pressure on the rupee.

"The rupee was seen trading in the range of 20 paise. The dollar index was higher, rupee was seen depreciating against the US dollar. This points towards the inherent weakness in the rupee. Tomorrow's RBI monetary policy will be the important event to watch for," said Abhishek Goenka, Founder and CEO, India Forex Advisors.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,"The INR continued to remain weak for most of the day's session as risk aversion in global markets over tensions in North Korea and dollar demand from importers continued to weigh on INR.

"The pair has been trading on a lacklustre note on rising uncertainty of the outcome of tomorrow's credit policy meet. A weaker tone of domestic equity markets also added to the weak cause."

The premium for the forward dollar closed steady to better on stray payments from banks and corporates.

The benchmark six-month forward dollar premium payable in June closed at its last Thursday's level of 156-158 paise while far-forward contracts maturing in December moved up further to 315-1/2-317-1/2 paise from 312-314 paise.

The RBI has fixed the reference rate for the US dollar at 53.8905 and for euro at 72.5070.

The rupee remained firm against the pound sterling to 84.72 from last weekend's close of 84.95 and also improved further against the Japanese yen to

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