The Indian rupee ended marginally lower by two paise at 63.62 against the US dollar on month-end demand for the American currency from importers.
However, strong recovery in the equity market restricted the rupee’s fall, forex dealers said.
The rupee resumed at yesterday’s closing level of 63.60 at the Interbank Foreign Exchange (Forex) and hovered in a restricted range of 63.55 and 63.63 before finishing at 63.62, showing a loss of just two paise, or 0.03 per cent, from its last close.
The dollar index was trading lower by 0.01 per cent against its major global rivals today.
In New York market, the euro strengthened yesterday despite reports that Greece’s creditors had rejected negotiators’ latest reform proposal, sparking a sell-off in Greek bonds and European equities.
Oil prices were little changed in Asian trade today as an unexpected build in US gasoline inventories offset a higher than forecast draw in US crude inventories, while Brent was supported by buoyant manufacturing figures from Europe.
Meanwhile, the benchmark BSE Sensex recovered by 166.30 points, or 0.60 per cent, to close at 27,895.97. In the forward market, the premium for the dollar continued to decline on persistent receivings from exporters.
The benchmark six-month premium payable in November eased to 193-195 paise from 196-198 paise yesterday while those maturing in May, 2016 also closed lower at 420-422 paise from 425.5-427.5 paise.
The RBI fixed the reference rate for the dollar at 63.6121 and for the euro at 71.1692.
The rupee firmed up further against the pound sterling to 100.04 from 100.25 previously and advanced further against the euro to 71.23 from 71.27 previously.
However, the domestic unit fell against the Japanese unit to 51.47 per 100 yen from 51.34 previously.