Indian rupee weakens 10 paise against dollar

By: | Updated: June 15, 2015 6:40 PM

The rupee lost 10 paise against the US dollar at 64.16 in early trade, extending its weakness for the third straight day at the Interbank Foreign Exchange, due to sustained demand for the US currency from importers amid capital outflows.

indian rupeeForex dealers attributed the rupee?s fall to continued demand for the dollar from importers and euro?s weakness against the American currency after negotiations between Greece and its creditors broke off. (PTI)

Continuing its fall for the third straight day, Indian rupee slipped 10 paise against the American unit to 64.16 on persistent dollar demand from banks and importers on the back of strong greenback in the global market.

Sustained capital outflows also weighed on the rupee sentiment, brokers said.

However, rise in the equity market restricted rupee’s fall to some extent, a forex dealer said. Sensex rose by 161.25 points or 0.61 per cent on account of strong factory output, steady inflation and above normal monsoon till now.

The domestic unit opened lower at 64.15 from its previous close of 64.06 at the Interbank Foreign Exchange (Forex) market and hovered in a range of 63.9925 and 64.1750 before finishing at 64.16 per dollar, a loss of 10 paise or 0.16 per scent.

The rupee has shed 32 paise or 0.50 per cent in last three sessions.

Globally, dollar was higher against the major rivals in early trade ahead of the key Federal Open Market Committee meet amid deadlock between Greece and its creditors broke up in failure over the weekend.

Meanwhile, foreign investors pulled out Rs 670.96 crore last Friday, according to provisional data.

Crude Oil prices fell in Asia today as dealers fretted over a collapse in Greece’s debt talks and a possible return of Iranian supplies disrupted by international sanctions, analysts said.

The US benchmark West Texas Intermediate for July delivery fell 20 cents to USD 59.76 while Brent crude for July eased 37 cents to USD 63.50 in mid-morning trade. The dollar index was trading higher by 0.23 per cent against its major global rivals today.

Pramit Brahmbhatt, Veracity Group CEO said: “Though for the day exporters were seen selling dollar, which saved Rupee from falling further and also the local equities closed on a positive note which further helped rupee to trade firm.”

The trading range for the spot USD/INR pair is expected to be within 63.80 to 64.60.

In the forward market, the premium for dollar continued to decline on sustained receiving by exporters.

The benchmark six-month premium payable in November moved down further to 205-206 paise from the last weekend’s level of 209.5-210.5 paise and maturing in May, 2016 also declined further to 426-428 paise from 433.5-434.5 paise.

The RBI fixed the reference rate for the dollar at 64.0868 and for the euro at 71.8453.

The rupee fell against the pound sterling to 99.45 from 99.28 last Friday and dropped against the euro to 72.01 from 71.68 previously.

The domestic currency moved down against the Japanese unit to 51.92 per 100 yen from 51.79 previously.

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