Rupee falls 11 paise to 66.44 Vs US dollar

In line with equities, the rupee Monday fell by 11 paise to close at 66.44 on fresh demand for the US currency from banks and importers despite weaker dollar in the overseas market.

PTI| Last Updated: May 02, 2016, 18:37 PM IST
Rupee falls 11 paise to 66.44 Vs US dollar

Mumbai: In line with equities, the rupee Monday fell by 11 paise to close at 66.44 on fresh demand for the US currency from banks and importers despite weaker dollar in the overseas market.

Fresh foreign capital outflows also affected the rupee sentiment, a forex dealer said.

The rupee resumed lower at 66.41 as against last Friday's level of 66.33 per dollar at the Interbank Foreign Exchange market and hovered in a range of 66.3150 and 66.4550 before ending at 66.44, showing a loss of 11 paise or 0.17 percent.

The rupee had gained by 19 paise or 0.29 percent on last Friday.

The dollar index was down 0.19 percent against a basket of six global currencies in the afternoon.

The RBI fixed the reference rate for the dollar at 66.3435 and euro at 76.0562.

In cross-currency trades, the rupee dropped further against the pound sterling to finish at 97.31 from the last Friday's closing level of 97.05.

It also moved down further against the euro to 76.28 per euro from 75.60 per euro previously.

The domestic currency also dropped further against the yen to 62.20 per 100 yens from 61.92.

In the global market, the yen gained to a fresh 18-month

high against the dollar in range-bound Asian trade today, with investors still feeling the heat of the Bank of Japan's decision to hold off extending stimulus last week.

The US dollar declined to as low as ?106.14 earlier in the session, its lowest since October 17, 2014, before bouncing back to ?106.51.

The Japanese currency strengthened at a rapid pace, as the BOJ's inaction Thursday dashed hopes for more stimulus especially among non-Japanese investors.

On Monday, trading volume was thin with many Japanese corporate players and institutional investors away in the middle of Japan's Golden Week holiday season. Government offices and financial markets will be closed May 3-5 for national holidays.

Pramit Brahmbhatt of Veracity Financial Services said," The rupee opened on a weak note strengthening USD compared to previous close of 66.33/USD. Taking cues from domestic equity market where Nifty lost nearly 40 points, the rupee continued to depreciate for the day. Thus to end the day, the rupee closed with a loss of 11 points at 66.44/USD."

Crude oil prices extended a fall today from the end of last week as profit-taking offset positive sentiment from declining US crude oil production and a weaker dollar.

In forward market, premium for dollar ended mixed due to uneven demand and supply transactions.

The benchmark six-month premium for October eased to 210-212 paise from 211-212.50 on last Friday while far forward March 2017 contract moved up to 404.5-405.50 paise from 403-404 paise.

Meanwhile, the benchmark Sensex dropped by 169.65 points or 0.66 percent to close at 25,436.97.