Rupee falls for second straight day to hit 65.12 Vs US dollar

Mumbai: Extending losses for the second straight session, the rupee Wednesday fell by another 7 paise to to end at 65.12 against the US dollar on persistent demand for the American currency from banks and importers despite sustained foreign capital inflows.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 523.69 crore yesterday, as per provisional data released by the stock exchanges.

The Indian rupee opened marginally lower at 65.09 per dollar as against yesterday's level of 65.05 at the Interbank Foreign Exchange market.

It hovered in the range of 65.22 to 65.09 per dollar during day before ending at 65.12, showing a loss of seven paise or 0.11 per cent.

The domestic currency has lost 32 paise or 0.49 per cent in two days.

The dollar index was trading down by 0.03 per cent against a basket of 6 currencies in the late afternoon trade.

In Tokyo, the dollar inched up against the yen in range-bound in late afternoon trade today, with investors largely sitting on the sidelines with no fresh trading cues.

Amid a lack of fresh trading cues, the dollar advanced against the yen with a solid gain in the benchmark Nikkei Stock Average supporting the trading pair.

However, in New York, the US dollar eased marginally against its main rivals yesterday, but the greenback held in a tight range as investors refrained from making large bets ahead of a meeting of European Central Bank policy makers.

Meanwhile, the benchmark BSE Sensex declined by 19.17 points or 0.07 per cent to close at 27,287.66.

Pramit Brahmbhatt, Veracity Group CEO, said, "Today also

the rupee depreciated over seven paise for the day to close at 65.12 taking cues weakness in local equities as investors continued to stay away from the uncertain market. Also the sustained dollar demand from oil importers further forced the rupee to depreciate over 0.10 per cent for the day.

The trading range for the Spot USD/INR pair is expected to be within 64.75 to 65.60.

In forward market today, premium for dollar eased further on sustained receivings from exporters.

The benchmark six-month premium payable in March moved down further to 182-184 paise from 185.5-186.5 paise yesterday and far forward Sept 2016 also eased to 396-397.5 paise from 399-400 paise.

The RBI fixed the reference rate for the dollar at 65.1513 and for the Euro at 73.9728.

The rupee went up against the pound sterling to finish at 100.64 from 100.66 previously and also climbed against the euro to 73.92 from 73.99.

The domestic currency ended higher against the Japanese currency to close at 54.26 per 100 yen from 54.39.

The Forex market and Money market will remain close tomorrow, 22nd October 2015 on account of "Dussehra" festival.