In line with equity market, the rupee ended lower by 13 paise to 64.96 against the American currency on month-end dollar demand from importers.
The Indian unit opened lower at 64.92 as against last Friday’s closing level of 64.83 at the Interbank Foreign Exchange (forex) market and dropped further to 65.01 on initial dollar demand from banks and importers before ending at 64.96, showing a loss of 13 paise or 0.20 per cent.
The domestic currency hovered in a range of 64.90 and 65.01 during the day.
The dollar index was traded at 0.17 per cent lower in the late afternoon trade against a basket of six currencies.
Meanwhile, the dollar lost some of its gains against the yen and the euro in Asia trade today, with investors booking profit on recent advances in the greenback that were propelled by brighter risk sentiment and a global stock market recovery.
Pramit Brahmbhatt, Veracity Group CEO, said, “Today the rupee traded weak and closed at 64.96 for the day. The rupee depreciated by 16 paise to 64.99 against the US currency in early trade due to strong dollar demand from importers. Dollar index is traded negative which capped the rupee’s depreciation towards end.
The trading range for the Spot USD/INR pair is expected to be within 64.60 to 65.30.
Meanwhile, the Indian benchmark BSE Sensex ended lower by 108.85 points or 0.40 per cent to close at 27,361.96.
In forward market today, premium for dollar declined marginally on mild receivings from exporters.
The benchmark six-month premium payable in March eased to 181-182 paise 182-184 paise on last Friday and far forward September 2016 also moved down to 395-397 paise from 396-398 pasie previously.
The RBI fixed the reference rate for the dollar at 64.9603 and for the euro at 71.6447.
The rupee firmed up further against the pound sterling to finish at 99.69 from 99.88 previously and also moved up against the euro to 71.66 from 71.98.
The domestic currency ended higher against the Japanese currency to close at 53.68 per 100 yen from 53.71.