Rupee snaps two-day rally, down 16 paise at 54.36 vs US dollar

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said," The rupee traded on a mixed note tracking risk aversion sentiments in global markets".

Meanwhile, the Indian stock market benchmark Sensex, which was down by nearly 166 points in early stages, recovered later to close down by only 56.15 points.

"The Greece factor also weighed on the single currency even though after passing of the austerity vote," Brahmbhatt added.

On the rupee outlook, Abhishek Goenka, Founder & CEO, India Forex Advisors said: "We expect the market to remain volatile ahead of the key events lying in the month of November which include India's IIP and inflation data followed by GDP at the month end."

Meanwhile, the premium for the forward dollar closed sharply lower on fresh receipts by exporters.

The benchmark six-month forward dollar premium payable in April settled down at 154-156 paise from yesterday's close of 161-163 paise.

Far-forward contracts maturing in October also reacted downwards to 292-1/2-294-1/2 paise from 299-301 paise.

The RBI has fixed the reference rate for the US dollar at 54.4403 and for euro at 69.4755.

The rupee also fell back slightly against the pound sterling to 86.73 from Wednesday's close of 86.67. It dipped against the Japanese yen to 68.09 per 100 yen from 67.54.

Rupee, however, remained firm against the euro to 69.28 from last close of 69.48.