Fresh selling of dollars by banks and exporters on the back of good foreign capital inflows helped the rupee
After hitting a record low of 68.85 to the dollar last week, a Reuters poll suggests the rupee will stabilise at 66 to the dollar by the end of September, while technical charts also point to a period of relative calm.
Fag-end selling of dollars by banks and exporters
RBI fixed the reference rate for the dollar at 66.2930 and euro at 74.8978.
In forward market, premium for dollar continued to fall due to persistent receivings from exporters.
Even the persistent rise in equity market failed to restrict the rupee's fall.
The rupee slipped marginally by two paise at 66.43 against the US dollar on good demand
Rupee was impacted by renewed dollar demand from banks and importers amid sharp falls in equity market
The rupee had gained by 50 paise or 0.75 per cent in two weeks.
The rupee's fall against the dollar is bad news for companies which have increased their exposure to foreign currency loans in recent years.
This is its lowest level since August 30
The rupee has dropped by 60 paise or 0.89 per cent in the last three trading days.
Traders said appreciating rupee against the American currency made imports of dollar denominated precious metal cheaper, which mainly kept pressure on bullion prices.
The dollar gained against other currencies overseas.
A weak dollar sentiment across the board alongside unwinding of long positions by speculative traders ahead of key US macro data release largely supported the rupee
Month end dollar demand from oil importers has forced rupee to trade weak.
India's sad export figure put pressure on the rupee
Forex dealers said besides dollar's gains against other currencies, fresh demand for the American unit from importers and a weak opening in the domestic equity market put pressure on the rupee.
There was fresh selling of the American currency by banks and exporters
In the currency markets, the rupee lost another 10 paise to close at 1-week low of 63.54 against the US dollar
The dollar's weakness against some currencies overseas limited the rupee's fall.
The domestic currency has dropped by 62 paise or 0.93 per cent in four trading days.
Traders said subdued demand from jewellers and retailers at prevailing levels and a weak global trend led to fall in gold and silver prices.
Sharp rate hike in Russia further raised concerns about the global economy.
Recovery in the equity market also boosted the rupee value against the dollar, a forex dealer said
The rupee declined marginally by 3 paise to 66.03 per dollar on fresh demand for the US currency from banks and importers.
Weak dollar against other currencies overseas supported the rupee
On Friday, the rupee had gained 9 paise to close at a fresh one-week high of 67.08.
The rupee showed range-bound movement on Wednesday as investors preferred to stay cautious in the unsure market.
A sustained rise in equity market also boosted the rupee sentiment.
Investors are anxious over the US-China trade tension, a sharp devaluation in yuan and uncertainty over Kashmir issue.
A strong currency helps in fighting some of the import-led inflation.
The domestic currency has already dropped 44 paise, or 0.67 per cent, in the previous two sessions.
Without factoring in the rupee-dollar exchange rate, the index has been touching new all-time highs repeatedly.
On Wednesday, the rupee had dropped by 26 paise.
The rupee had recovered by 8 paise to close at 66.91 in Tuesday's trade.
Forex market was shut on Tuesday on account of 'Mahavir Jayanti'.
The rupee on Thursday appreciated 20 paise to end at 62.37, its highest in two weeks, on positive trends in local equities and fresh dollar selling by exporters.
The rupee briefly touched 66.78 in late afternoon trade due to stray dollar buying by some banks.
The rupee gained for the second day, adding 32 paise to close at a fresh two-month high of 61.07 against the dollar amid a rise in local equities and sustained capital inflows.
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