Rupee closes at 53.92 against US dollar
Tracking losses in the local stock market, the rupee on Thursday lost 10 paise to close at 53.92 due to renewed dollar demand driven by strengthening of the US currency overseas.
Mumbai: Tracking losses in the local stock market, the rupee on Thursday lost 10 paise to close at 53.92 due to renewed dollar demand driven by strengthening of the US currency overseas.
Forex dealers said, however, positive cues from easing inflation and continued foreign fund flows capped the rupee's fall to some extent.
The local unit resumed lower at 53.85 against yesterday's close of 53.82 per dollar at the Interbank Foreign Exchange (Forex) Market.
It declined further to 53.97 before ending the day a tad better at 53.92, a loss of 10 paise, or 0.19 percent, over the previous close. Rupee moved in a tight range of 53.81- 53.97 during the day.
"The rupee was seen trading range bound amid positive domestic data and the fall in the euro. On the international front, euro-zone's GDP figures put pressure on the rupee," said Abhishek Goenka (Founder & CEO, India Forex Advisors).
Snapping a two-day gaining string, the BSE benchmark Sensex slipped by 111 points, or 0.57 percent, to 19,497.18 today.
Foreign institutional investors pumped in nearly USD 60 million (Rs 321.26 crore) into local equities, according to BSE provisional data.
The January WPI inflation figures which slipped to three- year low at 6.62 percent against 7.18 percent in December.
In Sydney, the US dollar inched higher gaining some traction against rivals ahead of a meeting of the world's top finance ministers and central bankers.
In London, euro and shares fell today after data showed the euro-zone's two biggest economies shrank even more than expected late last year, throwing a first quarter recovery into doubt.
In New York, the US dollar trimmed its losses against the yen yesterday as investors sorted out the stance by the world's largest industrialised economies on recent weakness in the Japanese currency.
The premium for the forward dollar declined sharply on sustained receipts by exporters.
The benchmark six-month forward dollar premium payable in July dropped further at 173-1/2-175-1/2 paise from Wednesday's close of 180-182 paise.
Far-forward contracts maturing in January remained weak at 336-1/2-338-1/2 paise from 344-346 paise.
The RBI fixed the reference rate for the US dollar at 53.8715 and for euro at 72.3760.
The rupee moved up further against the pound sterling to 83.60 from last close of 83.77 while recovered smartly against the euro to end at 71.88 from 72.60.
It, however, declined further against the Japanese Yen to 57.87 per 100 yen from previous close of 57.50.