Rupee snaps 3-day uptrend, down 11 paise at 53.81
Defying positive sentiments in the stock market, the rupee on Friday snapped its three-day winning trend to close 11 paise down at 53.81 against the dollar amid fresh demand of the US currency from importers.
Mumbai: Defying positive sentiments in the stock market, the rupee on Friday snapped its three-day winning trend to close 11 paise down at 53.81 against the dollar amid fresh demand of the US currency from importers.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced stable at its overnight closing level of 53.70 and immediately touched a high of 53.60 on firm local stocks amid some dollar selling by exporters.
The dollar index, a gauge of six major global rivals, was up by 0.35 percent as traders laid bets ahead of the release of crucial October non-farm US payrolls data, experts said.
This led to a demand from importers as businesses wanted to lock the US currency at cheaper rates in anticipation of sharper rise in coming days, they added.
This sudden dollar demand from importers and strong dollar overseas weighed on the rupee and it fell back to a low of 53.82. FII inflows worth USD 70 in stocks helped cushion the currency's fall partially. The rupee concluded marginally better at 53.81 -- a fall of 11 paise or 0.21 percent. In the three days before Friday, it had risen by 38 paise.
The rupee's fall comes on a day the Indian stock market benchmark Sensex closed higher by 193.75 points.
The rupee could not hold on to its gains Friday on account of positive stock markets and we expect the rupee to be in the range of 53.50-54.25 for the next few days, said Abhishek Goenka, Founder & CEO, India Forex Advisors.
"Rupee continued to trade in a tad range with weakening bias. Euro remained on a weak note after the zone's October manufacturing numbers witnessed contraction...The dollar index edged higher due to risk aversion after European stocks declined," Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said.
The premium for the forward dollar recovered on fresh payments from banks and corporates.
The benchmark six-month forward dollar premium payable in April rose to 166-168 paise from overnight close of 164-166 paise.
Far-forward contracts maturing in October also ended higher at 304-1/2-305-1/2 paise from 298-300 paise.
The RBI has fixed the reference rate for the US dollar at 53.6645 and for euro at 69.2425.
The rupee recouped against the pound sterling to 86.58 from Thursday's close of 86.82, while it improved further to 69.31 per euro from 69.57.
The rupee also edged up further against the Japanese yen to 67.07 per 100 yen from last close of 67.11.