Rupee tumbles by 33 paise Vs US dollar
The local unit resumed lower at 54.25 a dollar against last close of 54.14 at the Interbank Foreign Exchange (Forex) market but immediately touched a high of 54.09 on initial dollar selling by exporters and persistent capital inflows.
However, it later turned negative and logged a low of 54.57 before closing at 54.47, a fall of 33 paise, or 0.61 per cent, from its previous close.
Forex dealers said fresh dollar demand from importers also weighed on the rupee sentiment, while sustained foreign fund inflows into local stocks capped its fall to some extent.
Foreign institutional investors pumped in USD 118.9 million today, according to the provisional data available on bourses.
Meanwhile, the BSE benchmark Sensex today declined by 62.70 points to 19,424.10.
The rupee had hit one-month high of 54.14 against the dollar yesterday, after BSP chief Mayawati decided to lend her party's support to the government on allowing foreign direct investment (FDI) in the multi-brand retail segment.
In the last three sessions, the local unit had gained 63 paise against the dollar.
"The rupee's weakness was mainly on account of a strong recovery in the dollar index after US economy posted a better than expected data.
"During the day, the rupee appreciated slightly after the Indian government won retail FDI vote in Rajya Sabha. However, this appreciation was temporary as the news was already priced in," India Forex Advisors Founder and CEO Abhishek Goenka said.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said: "The rupee erased the most of yesterday's gains after the dollar index advanced sharply on weaker Euro due to stark warning issued by Bundesbank to Germany over growth prospects, he added.
The dollar index, a gauge of six major global rivals, was up by 0.26 per cent after European Central Bank President Mario Draghi yesterday hinted that the bank could lower interest rates.
Meanwhile, the New York crude oil was quoting above USD 86 a barrel in Europe today.
The premium for the forward dollar moved down further on sustained receipts by exporters.
The benchmark six-month forward dollar premium payable in May slipped to 165-1/2-167 paise from yesterday's close of 168-169-1/2 paise.
Far-forward contracts maturing in November also declined to 313-314-1/2 paise from 316-1/2-318-1/2 paise.
The RBI has fixed the reference rate for the US dollar at 54.2018 and for euro at 70.2175.
The rupee also turned negative against the pound sterling to end at 87.26 from Thursday's close of 87.21 and also dipped against the Japanese yen to 66.14 per 100 yen from 65.72.
It, however, improved further to 70.38 per euro from last close of 70.75.
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