There was mild selling of dollars by banks and exporters
In New York, the dollar fell against other major currencies on Monday after a December reading on the US services sector came in below market expectations.
The rupee was hovering in a range of 66.65 and 66.89 in morning trade.
The rupee resumed higher at 59.10 per dollar as against the last Friday's closing level of 59.17 at the Interbank Foreign Exchange market.
The rupee had closed barely steady at 63.75 on Wednesday.
It hovered in a range of 63.57 and 63.70.
The local currency had surged 35 paise to 63.65 in Thursday's trade.
Banks and exporters preferred to reduce their dollar position on hopes of further capital inflows as foreign portfolio investors infused $107.22 million yesterday as per the record of Securities and Exchange Board of India.
Frantic dollar demand from corporates along with an aggressive hedging strategy adopted by importers in the wake of the currency volatility predominately took a toll on the domestic unit despite moves by the central bank to stabilise the currency.
The partially convertible rupee was trading at 65.87/88 per dollar.
The rupee had plunged to close at its fresh two-year low of 66.84 against the dollar by falling 11 paise in Tuesday's trade.
The industrial production grew by two per cent in September, mainly on account of better performance by power and mining sectors.
The rupee had dropped 18 paise against the dollar on Thursday.
The rupee depreciated 20 paise to close at 63.84 in Monday's trade.
The rupee on Monday tumbled by 68 paise to close at a nearly 8-week low of 66.44 against the American currency.
A lower opening of the domestic equity market put pressure on the rupee.
The dollar index was trading marginally higher by 0.06 per cent.
Forex dealers said besides strong demand for the American currency from importers, capital outflows mainly weighed on the domestic currency.
The rupee on Friday rebounded from the near-80 levels to close higher by 17 paise at 79.82 against the US currency following a recovery in the domestic stocks and weakness in the greenback in overseas markets. The US dollar retreated from the two-decade high levels against a basket of six currencies which supported the rupee sentiment. At the interbank foreign exchange market, the local currency opened at 79.95 and witnessed an intra-day high of 79.82 and a low of 79.96 against the US dollar in the day trade. ,
Weakness of dollar in the overseas market also boosted the rupee value, a forex dealer said.
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Demand for the dollar from importers weighed on the local currency.
The rupee depreciated further by 13 paise to hit a new life-time closing low of 82.30 against the US dollar on Friday as a firm American currency and risk-averse sentiment among investors weighed on the local unit. Moreover, a negative trend in domestic equities and elevated crude oil prices sapped investor appetite, forex traders said. At the interbank foreign exchange market, the local currency opened at 82.19, then fell further to 82.43. It finally settled at an all-time low of 82.30 against the American currency, registering a decline of 13 paise over its previous close.
Exchange-traded currency derivatives volumes are likely to drop in view of new Reserve Bank of India (RBI) rules, casting a cloud over further participation of retail investors and proprietary traders. There are concerns that existing positions without any underlying exposure will need to be liquidated. Also, weighed down by dollar demand from local oil companies and weakness in its Asian peers, the rupee on Wednesday (April 3) ended at a new closing low of 83.44 versus the US currency.
The rupee opened slightly higher by Rs 67.24 against Tuesday's closing level of Rs 67.26 per dollar.
Banks and importers preferred to increase their dollar position at the current level, a forex dealer said.
The dollar's strength against other currencies overseas limited the rupee's gain.
The rupee resumed higher at 67.77 per dollar as against last Friday's closing level of 67.78.
In the global market, dollar fell against most of its rivals on Monday.
Overseas, the US dollar hovered near a three-week low.
The rupee depreciated 39 paise to an all-time low of 82.69 against the US dollar in early trade on Monday as elevated crude oil prices and risk-averse sentiment among investors weighed on the local unit. Moreover, a negative trend in domestic equities and firm American currency sapped investor appetite, forex traders said. At the interbank foreign exchange, the rupee opened at 82.68 against the greenback, then slipped further to 82.69, registering a fall of 39 paise over its previous close.
The rupee had plunged by 19 paise to close at over 3-week low.
The rupee on Thursday plummeted to an over three-month low of 63.32 by losing 50 paise against the US dollar.
The rupee hovered in a range of 63.75 and 63.84.
The rupee resumed lower at 64.20 per dollar.
On Friday, the rupee had lost 6 paise.
However, foreign capital inflows into equity market restricted the rupee's fall to some extent.
The RBI is still a small player in international gold buying among central banks. But in terms of total gold bought in 2019, it is the sixth largest buyer with 25.2 tonnes purchases in the first 10 months of 2019.
Indian rupee washed out initial losses against the greenback.
The rupee has dropped by 49 paise or 0.75 per cent in four days.
The rupee appreciated by 37 paise to 62.12 against the dollar in early trade on Monday.
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