Rupee ends 4-day gaining string, down 9 ps Vs USD at 53.28
Mumbai: Snapping a four session gaining streak, the rupee on Monday lost nine paise to 53.28 against the US dollar due to renewed dollar demand and firm global cues, amid weak local equities.
Forex dealers, however, said that continued foreign flows capped rupee's fall to some extent.
The local unit commenced strong at 53.02 from Friday's close of 53.19 against the dollar at the Interbank Foreign Exchange (Forex) market.
However, fag-end dollar demand pulled it down to 53.32 before settling at 53.28, a fall of nine paise, or 1.34 percent. The rupee moved in a range of 52.91-53.32.
"The rupee was seen trading in the range of 41 paise. It was initially gaining against the US dollar but started depreciating taking cues from the weak euro. The rupee was also down as the dollar index recovered from its 3 month low and is now trading near 79.50 levels.
"The negative stock markets further put pressure on the rupee," said Abhishek Goenka, Founder and CEO, India Forex Advisors.
Foreign institutional investors pumped in nearly USD 161 million (Rs 856.94 crore) in local equities Monday, according to the BSE provisional data.
The dollar index was up by almost 0.30 percent against the basket of six major global currencies.
Meanwhile, the BSE benchmark Sensex lost 30 points to end at 19,751.19.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said: "The rupee reversed the initial gains of first half of session on dollar demand and political uncertainty after the Samajwadi party proposed for an early general election in September. A firmer tone of dollar index also added to rupee's woes".
The premium for the forward dollar fell back on fresh receipts by exporters.
The benchmark six-month forward dollar premium payable in July ended down at 182-183-1/2 paise from last Friday's close of 184-186 paise.
Far-forward contracts maturing in January also finished lower at 341-1/2-343 paise from 345-347 paise.
The RBI has fixed the reference rate for the US dollar at 52.9730 and for euro at 72.2060.
The rupee recovered against the pound sterling to 83.79 from last weekend's close of 84.17 and also recouped against the euro to 72.26 from 72.60.
It firmed up further against the Japanese yen to 57.40 per 100 yen from previous close of 57.75.