Rupee falls 15 p on renewed $ demand from oil importers

Written by Agencies | Mumbai | Updated: Jan 4 2013, 05:50am hrs
Rupee on Thursday fell for the first time in three days losing 15 paise to end at 54.50 against the dollar due to renewed demand for the US currency, especially from oil importers, amid firm global cues.

Forex dealers, however said, a rally in local equities amid increased capital inflows limited the rupee's fall to some extent. The domestic unit commenced weak at 54.44 a dollar from previous close of 54.35 at the Interbank Foreign Exchange (Forex) market and touched a high of 54.36 in afternoon deals.

Later, it fell back to a low of 54.62 on some hesitancy in local equities and dollar buying by importers. It managed to recover some ground and settled at 54.50, a fall of 15 paise, or 0.28%. In the last two days, it had spurted by 64 paise, or 1.16%, to a nearly three-week high.

The demand from oil importers at rupee's three-week high levels continued to erase gains in the local currency, pushing it down against the dollar, amid weakness in equities which later added minuscule gains towards the end of the session," Alpari Financial Services (India) CEO Pramit Brahmbhatt said.

Foreign institutional investors pumped in $256.4 million (R1,397.38 crore) into the local stock markets on Thursday, according to provisional BSE data.

Yields soar as debt sales seen within target

The 10-year bonds increased for a 10th day, the longest winning streak since November 2009, on optimism federal debt sales will remain within target as public finances improve. Yields on 8.15% notes due June 2022 fell 2 basis points, or 0.02 percentage point, to 7.97% in Mumbai, according to RBIs trading system.