Firm equity market failed to restrict the rupee's fall against the dollar
After three days of rise, the rupee on Tuesday fell by 5 paise to end at 67.18 on fresh dollar demand from banks and importers in spite of sustained rally in domestic capital market.
Firm equity market failed to restrict the rupee's fall against the dollar, a forex dealer said.
The rupee opened lower at 67.l650 as against the last closing closing level of 67.13 at the Interbank Foreign Exchange (Forex) market and dropped further to 67.1975 before closing at 67.18 per dollar, showing a loss of 5 paise or 0.07 per cent.
The rupee had gained by 32 paise or 0.47 per cent in the previous three trading days.
The domestic unit hovered in a range of 67.1975 and 67.10 during the day.
The dollar index was trading lower by 0.33 per cent against a basket of six currencies in the late trade.
Meanwhile, the RBI fixed the reference rate for the dollar at 67.1471 and euro at 74.4460.
In cross-currency trades, the rupee moved down against the pound sterling to end at 88.27 from 87.19 of Monday and also fell against the euro to 74.46 from 74.20.
The domestic currency firmed up further against the Japanese yen to 64.73 per 100 yens from 65.57.
In overseas markets, the yen weakened against rival currencies in the late afternoon trade, including the dollar today after former Federal Reserve head Ben Bernanke told
Japanese Prime Minister Shinzo Abe that Japan has options to further ease monetary policy.
Still, the dollar was broadly lower when other trading was factored in.
In the forward market, premium for dollar eased on mild receivings from exporters.
The benchmark six-month premium for December eased to 188-190 paise from 190-191 on Monday and forward June 2017 contract declined to 386-388 paise from 389-390 paise.
Meanwhile, both the indices, Sensex and Nifty ended at fresh 11-mth high on sustained buying from investors ahead of IIP and inflation data coupled with persistent foreign capital inflows amidst higher global cues.
The benchmark Sensex ended higher by 181.45 points or 0.66 per cent to 27,808.14.
Illustration: Uttam Ghosh/Rediff.com
