The Indian rupee ended higher by 7 paise at 63.75 against the US dollar on fag-end selling pressure from banks and exporters on hopes of resumption of foreign capital inflows.

The rupee resumed marginally higher at 63.80 per dollar as against the last weekend’s level of 63.82 per dollar at the Interbank Foreign Exchange (Forex) Market and hovered in a range of 63.58 and 64.26 before ending at 63.75 per dollar, disclosing a gain of seven paise or 0.11 per cent.

It dropped to a fresh 20-month low of 64.26 intra-week against the American currency on fresh dollar demand from banks and importers.

Hiren Dhakan, Associate Fund manager, Bonanza portfolio, said,”Indian Rupee touched a fresh 20-month low against the US dollar and it has been continuously under pressure since RBI’s policy.”

Pramit Brahmbhatt, Veracity Group CEO said,” This week we witnessed a see saw trade for the week in USD/INR pair”. The rupee moved in line with equity market. Local equities continued to extend its weakness from last week which forced Rupee to trade low during the week. But as the week progressed, the local equities tried to be stable along with global equities which helped Rupee to recover and close at 63.75.

On a weekly basis Indian Rupee has appreciated and posted a weekly gain. The trading range for the Spot USD/INR pair is expected to be within 63.40 to 64.20.

Foreign portfolio investors (FPIs) showed a net capital outflows of USD 102.65 million during the first four days of the week as per the SEBI’s record.

In the forward market, the premium ended mixed due to uneven demand and supply transactions of dollars.

Forward dollar premium payable in November finished lower at 217-219 paise as against the last weekend’s level of 222.5-224.5 paise and far-forward contract maturing in May 2016 closed slightly higher at 440.5-442.5 paise as against 437.5-439.5 paise

The RBI fixed the reference rate for the US dollar at 63.8955 and the euro at 71.8185 from preceding weekend’s level of 63.7615 and 69.9081, respectively.

The rupee fell against the pound sterling to end the week at 97.66 from 97.37 previous weekend and also moved down to 71.62 per euro from 69.97 per euro.

The domestic currency moved up further against the Japanese currency to end at 51.13 per 100 yen from preceding weekend’s level of 51.50.

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