Indian rupee snaps 2-week’s winning spree; ends 7 paise lower at 64.81 per dollar

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New Delhi | Published: October 17, 2015 1:58:21 PM

In a volatile market, the Indian rupee snapped its last 2-week winning spree against the American currency by ending lower by seven paise at 64.81 per dollar on some dollar demand from banks and importers.

indian rupee vs dollarIn a volatile market, the Indian rupee snapped its last 2-week winning spree against the American currency by ending lower by seven paise at 64.81 per dollar on some dollar demand from banks and importers. (Photo: Reuters)

In a volatile market, the Indian rupee snapped its last 2-week winning spree against the American currency by ending lower by seven paise at 64.81 per dollar on some dollar demand from banks and importers.

Persistent foreign capital inflows in view of strong equity market restricted the rupee’s loss against the dollar, a forex dealer said.

Foreign portfolio investors (FPIs) pumped in USD 184.82 millions during the first four days of the week, as per SEBI’s record.

The rupee resumed lower at 64.82 per dollar as against the last weekend’s level of 64.74 per dollar at the Interbank Foreign Exchange (Forex) market and dropped further to 65.19 per dollar on strong dollar demand from importers.

However, it trimmed its losses at the fag-end of the week to close at 64.81 per dollar, still showing a marginal loss of seven paise or 0.11 per cent.

The domestic currency had gained by 142 paise or 2.15 per cent in the previous two weeks.

It moved in a range of 64.6900 and 65.19 per dollar during the week.

In the global market, the U.S. dollar finished the week essentially flat against the euro on Friday after depreciating earlier in the week as investors braced for an expansion of the European Central Bank’s stimulus program.

A raft of weak U.S. data including a disappointing September retail-sales report released Tuesday have firmed expectations that the Federal Reserve will wait until next year to raise interest rates, which has in turn driven the dollar lower. The dollar weakened after the disappointing data and two Federal Reserve policy makers said they would like to wait before raising interest rates.

Forward dollar premium payable in March slipped to 189-191 from last weekend’s level of 199-201 paise on receipts from exporters and far-forward contracts maturing in September 2016 ended lower at 403-405 paise as against 414.5-416.5 paise previously.

The RBI fixed the reference rate for the dollar and euro at 64.9697 and 73.9940, respectively from the last weekend’s level of 64.7848 and 73.0837.

The rupee declined against the pound to end the week at 100.16 from the last weekend’s level of 99.34 and also fell against the euro to 73.60 from 73.56.

The domestic unit however, gained further against the Japanese currency to finish at 54.45 per 100 yen from the last weekend’s level of 53.59.

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