Good foreign capital inflows failed to restrict the rupee's fall against the dollar
The rupee continued to rule firm against the dollar for the second consecutive day.
The rupee ended lower by 7 paise to 62.31 against the American currency on fresh dollar demand from banks.
The rupee snapped its two-day winning run against the dollar.
The rupee had lost 10 paise to close at 21-month low of 64.26 against the greenback in Tuesday's trade.
Dealers attributed the rupee's fall to increased demand for the US currency from importers.
Forex dealers said rebound in domestic stock markets also helped the rupee strengthen against the dollar.
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The newly-appointed Governor Raghuram Rajan said on Wednesday Reserve Bank of India will offer a window to banks to swap the fresh FCNR-B dollar funds, mobilised for a minimum tenor of three years and over, at a fixed rate of 3.5 per cent per annum. According to Bank of America Merrill Lynch, "the move should fetch $8-10 billion", adding that the move would help in shifting rupee risks away from NRIs at a time of extreme volatility.
Overall forex market sentiment remained cautious
Rupee is under pressure against the dollar say currency watchers.
Snapping its two-day gains, the rupee on Monday declined by 48 paise to settle at nearly four-week low of 62.17 against the US currency.
Robust foreign capital inflows into upbeat domestic equity markets on the back of better macro fundamentals helped the rupee to gain
The rupee had slumped to its all-time closing low of 68.80 a dollar on August 28, 2013.
Rising for the second session, the Indian rupee on Thursday climbed by 50 paise to nearly four-week high of 62.67 against the greenback on persistent selling of dollars by banks and hopes of capital inflows in view of a strong equity market.
The domestic currency had gained by 80 paise, or 1.19 per cent, in previous five trading days.
Fresh dollar selling by banks and exporters largely helped the home currency to recover from early losses
Reflecting nervousness over the prospect of the Federal Reserve tightening policy and event risk, traders stayed on the sidelines
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.
The Indian rupee resumed sharply lower at 66.65 per dollar against last Friday's level of 66.48.
The rupee depreciated further by 7 paise to 65.12.
Forex market was shut on Tuesday on account of 'Mahavir Jayanti'.
The rupee had dropped by 60 paise or 0.89 per cent in previous three trading days.
The RBI fixed the reference rate for the dollar at 65.2525 and for the euro at 72.1954.
Continuing its range-bound movement for the fourth session, the rupee today closed up by two paise at 59.25 ahead of industrial output and retail inflation data.
A massive rally in domestic equities along with smooth supply of dollars on the back sustained capital inflows into equities and debt predominantly helped the upmove
The rupee briefly touched 66.78 in late afternoon trade due to stray dollar buying by some banks.
Recovery in the equity market also boosted the rupee value against the dollar, a forex dealer said
Falling for the first time in three days, the rupee today erased initial gains to end 15 paise lower at 62.43 against dollar on fag-end demand of the US currency from banks and importers, amid a tepid stock market.
Falling for the second day, the rupee on Friday weakened by 12 paise against dollar to end at 62.68 weighed down by demand for the American currency from importers and data showing fiscal deficit crossed 95 per cent of the annual target during April-December.
Investors are trying to push ahead with dollar purchases, emboldened by improving market sentiments
Increased demand for the American unit from importers and banks, affecting the value of the rupee
Dealers attributed the rupee's fall to fresh demand for USD.
Persistent fall in crude oil prices affected the market sentiment
The US currency's decline against major world currencies alongside fag-end dollar supply largely helped the rupee recoup some of its initial losses
Weakness in the dollar against some currencies supported the rupee.
Bank Nifty closes at a 30-month high; Rate sensitives lead the rally on RBI rate cut optimism.
In worldwide trade, the US dollar continued its highly bullish trend against all major emerging market currencies
The S&P BSE Sensex plunged 128 points to end at 25,102.
The Rupee is seen recovering from its all-time lows against the dollar.
In the global market, the US dollar index, which tracks the greenback against a basket of six major rivals, was up by 0.33 per cent.
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