Forex dealers attributed the rupee's fall to increased dollar demand from importers amidst rising global crude prices
Falling for the first time in three days, the rupee washed out initial gains to end four paise lower at 62.57 today on caution ahead of US non-farm payrolls data and sustained capital outflows from Indian markets.
In line with equity market, the rupee trimmed its initial losses but was quoted still lower by 17 paise on dollar demand from banks and importers despite weakness of the US currency overseas.
Fresh demand for the American unit from importers put pressure on the rupee.
Dealers said besides increased dollar selling by exporters, a higher opening in domestic equity market and yen's gain against the American currency overseas helped the rupee to recover.
Fresh demand for the American unit from importers put pressure on the rupee.
Nifty futures traded in Singapore were trading down 0.8 percent in line with other emerging Asian markets.
On Tuesday, the rupee had gained 10 paise to close at 66.52.
Weak domestic shares and foreign institutional investors' selling about 39 billion rupees of index futures in the last four trading sessions weighed on the rupee, dealers said.
The US dollar index, which tracks the greenback against a basket of six major currencies, was 0.38 per cent lower at 95.41.
At the Interbank Foreign Exchange market, the domestic currency commenced weak at 55.68 a dollar from Monday's close of 55.57 against the dollar.
Dollar's weakness against some other currencies overseas supported the rupee.
The rupee on Monday gained for the first time in three days and closed up 12 paise to 62.56 against the dollar on fag-end sales of the US currency.
There was sustained selling of the American currency by exporters ahead of a decision of US Federal Reserve on tapering its monetary stimulus.
Rupee gained on fresh selling of dollars by banks ahead of the RBI policy meeting.
The rupee on Monday fell by 40 paise to 59.96 in early trade on the Interbank Foreign Exchange market, weighed down by dollar's gains against other currencies in global markets.
A higher opening in domestic stock market supported the rupee.
The rupee had ended 47 paise higher at 60.14 against the US currency in the previous session.
Weakness in the dollar against some other currencies overseas, supported the rupee
Appreciation of the dollar overseas amid a lower opening in the domestic equity market affected the rupee
The dollar index, a gauge of six major currencies, was down by 0.13 per cent as it lost ground against the euro following a better-than-expected survey of German sentiment.
A higher opening in the domestic equity market and a weak dollar against other currencies overseas on a string of disappointing US data last week also supported the gain in the rupee
Weakening of the dollar against other currencies overseas, following disappointing economic data and a higher opening in the domestic equity market, supported the rupee.
The fall would have been much more pronounced, had there not been sustained capital inflows worth of over $100 million in equities, forex dealers said.
Forex dealers said besides dollar weakening against the euro in overseas markets, higher opening in the equity market and increased foreign funds inflows mainly supported the rupee.
The rupee lost 37 paise to end at 62.60 against the dollar on Tuesday following demand for the US currency and a fall in local equities on further rate hike concerns.
The rupee on Monday appreciated by 11 paise to 54.64 against the US dollar in early trade at the Interbank Foreign Exchange, aided by selling of the American currency by exporters and banks.
The US dollar bought 99.40 yen in Asian trade, compared with 99.21 in North American trade late on Monday.
Despite a heavy battering, the rupee on Tuesday made a smart recovery to close at 63.25 after hitting a fresh low of 64.13 against the US dollar, helped by RBI's massive intervention.
Pound Sterling also turned higher at Rs 81.59/61.
The rupee on Wednesday dropped by 73 paise to 61.20 in the late morning deals on persistent month-end dollar demand from importers on the back of strengthening in the US currency overseas.
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.
The dollar index was down by around 0.15 per cent against a basket of six major global currencies.
The rupee had lost 23 paise to end at 54.09 in Tuesday's trade due to month-end dollar demand.
Forex dealers said persistent capital inflows and bearish dollar overseas also boosted the rupee sentiment in Mumbai.
Foreign institutional investors pumped in nearly $60 million (Rs 321.26 crore) into local equities, according to BSE provisional data.
The rupee had strengthened by eight paise to close at 60.13 a dollar on Thursday, following firm local equities and fresh currency sales by exporters.
This is the first time since June 27 that the domestic currency has fallen below the 60 level.
Finance Minister P Chidambaram in an interview to PTI on Monday said, 'sentiment will turn in favour' of the rupee as government is 'committed to containing the fiscal deficit' within target and is addressing how to finance CAD.
The rupee had rose by a staggering 80 paise, its biggest single-day gain in last nine months, to close at 59.39 amid signs of strong fund inflows on Friday.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances