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Rediff.com  » Business » Rupee breaks 3-day winning run, down 13 paise

Rupee breaks 3-day winning run, down 13 paise

Last updated on: March 11, 2013 18:17 IST

MoneyTracking weak stock markets, the rupee on Monday closed 13 paise lower against the dollar at 54.41, breaking a three-day winning run, on heavy dollar demand ahead of industrial production and consumer inflation data on Tuesday.

The rupee closed in the negative terrain despite capital inflows worth $180 million and a sentiment boost from India's exports growing by 4.25 per cent in February, forex brokers said.

At the Interbank Foreign Exchange market, the domestic unit resumed lower at 54.42 a dollar from last weekend's close of 54.28 and declined further to a low of 54.52 on initial hesitancy in share markets and dollar demand from importers, mainly oil refiners, and some banks.

However, it later recovered on dollar selling by exporters and sustained capital inflows to a high of 54.17.

However, it again fell back at the fag-end in tandem with equities to settle at 54.41 -- a fall of 13 paise or 0.24 per cent.

The rupee gained 64 paise or 1.17 per cent in previous three sessions tracking buoyant stocks markets.

The dollar index was quoting up by nearly 0.1 per cent against a basket of six major global units.

"The rupee was seen reacting to the export import figures for February, which released on Tuesday.

The increase in exports came out as a surprise to the market and it made rupee to gain against the dollar at mid-session.

But internationally, the factors were pointing towards weakness in rupee, which led the rupee to close down," said Abhishek Goenka, Founder & CEO, India Forex Advisors.

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