The rupee on Tuesday again breached the 56-level by falling 12 paise to 56.05 against the US dollar in early trade on the Interbank Foreign Exchange on increased demand for the American currency from banks and importers.
The rupee on Monday rose by 5 paise to trade at 55.35 against the US dollar in early trade at the Interbank Foreign Exchange as the American currency weakened against euro overseas.
At the Interbank Foreign Exchange market, the domestic unit resumed lower at 54.42 a dollar from overnight close of 54.26 and moved in a narrow range of 54.34 and 54.46.
The domestic currency had ended 12 paise lower at Rs 55.80 against the dollar in Thursday's trade on fresh dollar demand from banks and importers amid a rise in May inflation.
The rupee had ended higher by 12 paise at 55.68 against the dollar in the previous session on fag-end selling of dollars by banks and exporters amid euro gaining strength overseas.
The domestic unit had lost 7 paise to close at 66.87 in Tuesday's trade.
On Thursday, the local unit had ended higher by 42 paise at 54.94, its highest closing since May 18 against the dollar on sustained FII inflows.
The rupee commenced higher at 55.14 a dollar from the overnight close of 55.36 at the Interbank Foreign Exchange market, and immediately touched a low of 55.30 on some dollar demand from oil importers as crude oil hovered around the $85 per barrel.
The rupee had lost 11 paise to close at 55.65 against the Greenback on Monday due to late dollar demand from importers.
Forex dealers said besides dollar's gains in the overseas markets, a weak opening in the stock market following capital ouflows, also put pressure on the local unit.
Dealers said Euro's gains against the dollar in overseas markets and step taken by the RBI to stablise the rupee mainly influenced the trading sentiment.
Sentiments were weighed down as the US dollar turned higher against its major counterparts.
Banks and exporters preferred to reduce their dollar position at the current stage in view of sustained capital inflows coupled with weakness in dollar overseas, forex dealers said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit opened lower at 56.02 as against its previous close of 55.64 on dollar buying by importers, mainly oil refiners, to meet their month-end requirements.
This marks a turnaround after rupee's 158-paise plunge in the last three sessions.
However, the US dollar's strength against other currencies overseas capped the rupee's gain
The Indian rupee recovered by four paise to 54.99 after touching all-time low of 55.07 against the American currency in the late morning trade due to mild selling of dollars by banks following following measures taken by RBI to curb the local currency's fall.
Forex dealers said fresh dollar demand from banks and particularly, month-end demand from oil importers despite weakness of the dollar in the overseas market pulled down the rupee.
The rupee on Monday dropped by 30 paise to 54.72 against the US dollar in late morning trade, due to on fresh demand for the American currency from banks and importers despite a weak global trend.
The rupee resumed better at 54.52 a dollar from previous close of 54.56 at the Interbank Foreign Exchange market and immediately touched a low of 54.56.
Fresh demand for dollars from banks and importers in view of firm dollar in the overseas market mainly affected the rupee value against the US unit, a forex dealer said.
The local currency commenced lower at 54.03 a dollar on Monday's close of 53.86 at the Interbank Foreign Exchange market.
The rupee plunged to nearly 33-month low of sub-52 level after losing a whopping 81 paise against the United States currency on sustained dollar demand amid weak trends in stock markets and deepening euro-debt crisis.
The rupee hovered in a range of 53.85-54.24 per US dollar during the day.
The Indian rupee continued to rule firm in the late morning session by improving five paise to 53.11 per dollar on selling of dollars by banks in view of persistent foreign capital inflows.
The US Fed kept its near-zero benchmark interest rate unchanged.
Forex dealers said, however, a firm dollar capped rupee's rise to some extent.
Forex dealers said fresh dollar demand from importers also weighed on the rupee sentiment, while sustained foreign fund inflows into local stocks capped its fall to some extent.
The Bombay Stock Exchange, the National Stock Exchange, the interbank foreign exchange market and overnight call money/government securities market will remain closed on Wednesday.
It moved in a range of 54.87 and 55.02 per dollar during the morning deals.
However, firm equity markets capped the rupee losses.
Forex dealers attributed the rupee's fall to increased demand for the US currency from importers
The finance ministry on Monday said the ability of the Reserve Bank to intervene in the forex market to arrest the fall in rupee is limited, even as the Indian currency declined to a 32-month low of Rs 51.50 per US dollar in the early trade.
Heavy dollar demand from some banks and importers, mainly oil refiners, weighed on the rupee's fortunes.
The rupee resumed lower at Rs 50.40/41 per dollar on the Interbank Foreign Exchange.
The Indian rupee was down by 44 paise at a fresh two-year low of Rs 48.25 per United States dollar in early trade on Tuesday on persistent demand for the American currency from banks and importers on the back of dollar firmness in overseas market.
The rupee rose by seven paise to 62.10 against the dollar.
Persistent dollar demand from banks and importers on the back of a higher dollar in the New York market mainly affected the rupee.
The rupee had lost 6 paise to close at 55.80 against the Greenback yesterday on persistent dollar demand amid stronger trend overseas.
The rupee was hovering in a range of 66.65 and 66.89 in morning trade.
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