A weakening dollar against other currencies overseas supported the rupee.
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 rupee depreciated 40 paise to an all-time low of 81.93 against the US dollar in early trade on Wednesday as the strengthening of the American currency and risk-averse sentiment among investors weighed on the local unit. Moreover, a negative trend in domestic equities and significant foreign fund outflows sapped investor appetite, forex traders said. At the interbank foreign exchange, the rupee opened at 81.90 against the greenback, then fell to 81.93, registering a fall of 40 paise over its previous closing.
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.
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 was at 61.09, breaching the previous low of 60.76 hit on June 26. It had closed at 60.225/235 on Friday.
The rupee plunged 58 paise to close at an all-time low of 81.67 (provisional) against the US dollar on Monday as the strengthening of the American currency overseas and risk-averse sentiment among investors weighed on the local unit. Moreover, escalation of geopolitical risks due to conflict in Ukraine, a negative trend in domestic equities and significant foreign fund outflows sapped investor appetite, forex traders said. At the interbank foreign exchange market, the local currency opened at 81.47, then fell further to close at an all-time low of 81.67 against the American currency, registering a decline of 58 paise over its previous close.
Crude oil prices rose in Asian trade on Friday after a brief dip as dealers digested upbeat US economic data and comments from a Federal Reserve official that its stimulus programme will not end soon, analysts said.
Forex dealers said besides dollar selling by exporters, a higher opening in domestic equity market helped the rupee to strengthen.
Forex dealers said besides dollar's gain against other currencies overseas, fresh demand for the American currency from importers put pressure on the rupee.
The dollar was firm against some global currencies.
The dollar index, consisting of six major currencies, was up by 0.35 per cent, ahead of tomorrow's US Federal Reserve meeting.
The rupee had lost 10 paise to close at 54.62 on Monday.
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.
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.
Sustained foreign capital inflows coupled with recovery in the equity market mainly boosted the rupee value against the dollar, a forex dealer said.
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.
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 hovered in a range of 53.85-54.24 per US dollar during the day.
Forex dealers said, however, a firm dollar capped rupee's rise to some extent.
Strengthening of the euro against the US dollar overseas also supported the rupee.
Increased demand for the US currency from importers put pressure on the rupee.
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 rupee hit a new 44-month closing high against the US currency at Rs 44.7450/7550 per dollar on Wednesday due to sustained heavy foreign investment inflows.
Forex dealers said fresh demand for the dollar also put pressure on the rupee.
The rupee extended its losses and slumped 60 paise to close at a record low of 77.50 (provisional) against the US dollar on Monday, pressured by the strength of the American currency overseas and unabated foreign fund outflows. Forex traders said risk appetite has weakened amid mounting concerns about inflation that may trigger more aggressive rate hikes by global central banks. At the interbank foreign exchange market, the rupee opened lower at 77.17 against the greenback, and finally settled for the day at 77.50, down 60 paise over its previous close.
It moved in a range of 54.87 and 55.02 per dollar during the morning deals.
The rupee slipped by 4 paise to close at 77.59 (provisional) against the US dollar on Tuesday, weighed down by a negative trend in domestic equities and unabated foreign fund outflows. At the interbank foreign exchange market, the rupee opened lower at 77.56 against the greenback, and finally settled at 77.59, down 4 paise over its previous close. During the trading session, the rupee touched an intra-day low of 77.67 and a high of 77.51.
After a brief overnight pause, the rupee climbed to a new 38-month peak against dollar early on Tuesday. In hectic trade at the Interbank Foreign Exchange market this morning, the rupee breached the crucial 45.40-dollar barrier and touched 45.36/37.
The rupee breached key resistance levels and spurted to a 38-month peak against the US currency on Wednesday, buoyed by robust foreign fund inflows and export proceeds
The rupee had lost 6 paise to close at 55.80 against the Greenback yesterday on persistent dollar demand amid stronger trend overseas.
For the month as a whole, rupee depreciated 6.34 per cent in May.
On Tuesday, the rupee had gained 10 paise to close at 66.52.
The Indian rupee continued its downward march and fell by another 48 paise to 46.53 against the US dollar in early trade on Tuesday owing to melting Asian stock markets amid heavy demand for the greenback.
Dollar's weakness against some other currencies overseas supported the rupee.
The rupee surged by a whopping 18 paise against the US currency early on Tuesday, extending its smart recovery-run for the second straight session on the back of robust trade and foreign fund investment inflows.
Weakness in the dollar against some other currencies overseas, supported the rupee
The domestic currency moved in a range between Rs 53.03 and Rs 53.24 per dollar during morning deals.
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