Indian rupee tumbles to over 5-week low at 64.04 vs US dollar

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Mumbai | Updated: July 24, 2015 7:01:34 PM

Extending its losses for the third day, the rupee today fell by another 27 paise to end at more than 5-week low of 64.04 per dollar.

indian rupeeIndian rupee weakened by another 20 paise to trade at 63.97 against the US dollar in early trade today (Reuters)

Extending its losses for the third day, the rupee today fell by another 27 paise to end at more than 5-week low of 64.04 per dollar on persistent demand for the US currency from banks and importers amid higher greenback against major rivals overseas.

Persistent fall in equity market also affected the rupee value against the dollar, a forex dealer said.

The rupee resumed sharply lower at 63.99 per dollar as against the last closing level of 63.77 at the Interbank Foreign Exchange market and dropped further to 64.06 to close at more than 5-week low of 64.04, showing a loss of 27 paise or 0.42 per cent.

The rupee had last closed above the 64 level on June 17, 2015, when it ended at 64.12.

The rupee has lost 49 paise or 0.77 per cent in the three days.

It moved in a range of 63.87-64.06 per dollar during the day.

The dollar index, which tracks the greenback against a basket of major currencies, was trading up by 0.19 per cent.

Oil prices rebounded in early trade after settling at their lowest in the previous session as worries over the demand outlook and continued oversupply weighed on the market.

Several currencies in the Asian Pacific region dropped to fresh multi-year lows today, while the dollar advanced against its major rivals.

“The weaker commodity price is helping to boost the dollar’s value against emerging market currencies,u201d said Marshall Gittler, head of global foreign-exchange strategy, at Iron FX, in a note tdoay.

Meanwhile, the benchmark 30-share index Sensex ended lower by 258.53 points or 0.91 per cent.

Pramit Brahmbhatt, Veracity Group CEO, said, “Today also the rupee traded low and depreciated by almost 27 paise for the day taking cues from weak local equities which closed in red and posted the weekly fall.

“Dollar index is also trading strong for the day which further hammered the rupee and forced it to close over the psychological figure of 64, he added.

The trading range for the spot USD/INR pair is expected to be within 63.70 to 64.30.

In the forward market, the premium for dollar ended lower on continued flow from exporters.

The benchmark six-month premium payable in December moved down further to 194-196 paise from 196-198 paise yesterday and far-forward contracts maturing in June 2016 also declined further to 421-423 paise from 425-427 paise.

The RBI fixed the reference rate for the dollar at 63.8916 and for the euro at 70.1210.

The rupee recovered against the pound sterling to end at 99.19 from 99.54 yesterday and also firmed up against the euro to 70.09 from 70.15 previously.

However, it fell further against the Japanese currency to 51.64 per 100 yen from 51.53 previously.

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