Rupee snaps 3-day winning spree, drops 37 paise

Rupee snaps 3-day winning spree, drops 37 paise
Mumbai: The Indian rupee snapped its 3-day gaining spree by losing 37 paise to end at 49.47/48 against the American currency on fresh dollar demand from banks and importers in view of strong dollar in overseas markets.
     
The domestic currency moved in a range of 49.13-49.52 per dollar during the day.
     
It finally settled the day at 49.47/48 per dollar, down 37 paise from its previous close.
     
Forex dealers said fresh dollar demand from banks and importers on the back of a firm dollar in the overseas market mainly affected the rupee value against the dollar.
     
They further said considering the Eurozone crisis and the volatility in global financial markets the rupee could touch 50 level in the medium term.
     
The dollar index was down by nearly 0.7 percent against a basket of currencies while New York crude oil was trading above USD 96 a barrel in the European market today.
     
The rupee premium for the forward dollar closed lower on fresh receivings by exporters.
     
The benchmark six-month forward dollar premium payable in April settled down at 105-107 paise from last Friday's close of 118-120 paise and far-forward contracts maturing in October finished sharply lower at 174-176 paise from 191-193 paise previously.
     
The RBI fixed the reference rate for the US dollar at Rs 49.3800 and for the euro at Rs 67.8411.
 
The rupee dropped further against the pound sterling to end at Rs 79.52/54 from last weekend's level of 78.69/71 and also declined to Rs 68.12/14 per euro from Rs 67.97/99 previously.
     
It also reacted downwards against the Japanese yen at Rs 63.41/43 per 100 yen from last close of Rs 62.92/94.

PTI