Indian rupee drops 9 paise at 61.36 against US dollar

Written by PTI | Mumbai | Updated: Nov 1 2014, 21:44pm hrs
Indian rupeeIt moved in a range of 61.18 per dollar and 61.55 per dollar during the week. Reuters
The Indian rupee failed to maintain initial gains against the American currency on month-end dollar demand from importers amidst firm dollar in the overseas market despite strong capital inflows into equity market.

The rupee resumed higher at 61.19 per dollar as against the last closing level of 61.27 dollar at the Interbank Foreign Exchange (Forex) market and firmed up further to 61.18 per dollar on selling of dollars by banks and exporters in view strong equity market.

However, it failed to maintain its initial gains and dropped to 61.55 per dollar on month-end dollar demand from importers mainly oil refiners before finishing at the week at 61.36 per dollar, showing a loss of 9 paise of 0.15 per cent.

It moved in a range of 61.18 per dollar and 61.55 per dollar during the week.

Pramit Brahmbhatt, Veracity Group CEO said, "Rupee continued to trade range bound to weak. Last week Rupee depreciated by 25 paise as dollar demand from importers, mainly oil companies' forced Rupee to trade low. Strength in Dollar indexmainly after the outcome of Fed meeting dented the Rupee movement further.

"Strong local equities which closed at all time high for the week supported the Rupee from falling further".

The Fed decision to the end of QE confirmed that the world's largest economy is back on track which created positive sentiments in the global equities and helped our local indices to trade strong he added.

In the forward market, premium continued its downslide on persistent receipts by exporters.

The benchmark six-month forward dollar premium payable in March dipped to 191-192-1/2 paise from preceding weekend's level of 200.5-202.5 paise while far-forward contracts maturing in September 2015 inched up to 422-424 paise from to 421.5-423.5 paise.

The RBI fixed the reference rate for the USD at 61.4080 and the euro at 77.1899 from last weekend's level of 61.2355 and the euro at 77.9650 respectively.

The rupee improved further against the pound sterling to 98.23 from 98.36 last weekend and firmed up to 77.22 a euro from 77.87 per euro previously.

It also rose to 54.95 per 100 yen from the last previous weekend's level of 57.30.