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Rediff.com  » Business » Rupee at 54.36; down 19 paise vs dollar

Rupee at 54.36; down 19 paise vs dollar

Last updated on: March 26, 2013 17:55 IST

MoneyThe rupee on Tuesday fell by 19 paise to close at 54.36 against the dollar due to month-end demand for the US currency from importers.

However, persistent foreign fund inflows and weak dollar overseas restricted the rupee fall's to some extent, forex dealers said.

The local currency resumed lower at 54.25 a dollar, which was also to be the day's high, from previous close of 54.17 at the Interbank Foreign Exchange (Forex) on early weakness in domestic stocks and renewed dollar demand from importers, mainly oil refiners to meet their month-end requirements.

It later moved down to a low of 54.41 before settling at 54.36, a fall of 19 paise, or 0.35 per cent.

Foreign institutional investors had pumped in $132.5 million (Rs 717.89 crore), according to provisional BSE data.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said: "Rupee ended weak today on month-end dollar demand. Looking at the global scenario expect rupee to trade weak with Political uncertainty which was also reflected in the weak local equities.

Following recovery in the euro, the dollar index was down by 0.10 per cent ahead of the release of a slate of US economic data later in the day.

"The rupee traded in a tight range and ended weak.

"It was seen under pressure on the back of the month-end dollar demand from importers despite small recovery in equity markets amid worries over domestic political stability.

"The outlook for Euro remains negative as the political & economic grid lock will continue to put pressure on euro in near term," said Abhishek Goenka, Founder & CEO, India Forex Advisors.

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