Rupee down 30 paise against dollar

Rupee down 30 paise against dollar Mumbai: The rupee Thursday lost 30 paise to close at 54.85 against the dollar due to fresh demand for the US currency from oil importers, amid some weakness in the local equities.

The local unit opened lower at 54.67 against the dollar from its previous close of 54.55 at the Interbank Foreign Exchange (Forex) market.

It, however, marginally recovered to 54.64 but, emergence of dollar demand from importers, mainly oil refiners, and fall in local equities weighed on the rupee and it fell back to a low of 54.90 before concluding at 54.85, a fall of 30 paise, or 0.55 percent.

Yesterday, rupee had risen by 30 paise.

"The rupee today fell mainly due to fresh dollar demand from oil importers. Thin trading volume on account of upcoming Christmas holidays also weighed on the local unit," IDBI Bank Head (Treasury) N S Venkatesh said.

Meanwhile, the BSE benchmark Sensex also fell by 22.08 points to 19,453.92.

Forex dealers said heavy capital inflows amid a weak dollar overseas, however, restricted the fall in rupee's value.

Foreign Institutional Investors (FIIs) picked up shares worth USD 286.32 million yesterday, as per SEBI data, taking a total to over USD 23 billion till December 19 this year.

The dollar index, a gauge of six major global rivals, was down by over 0.30 percent on concerns over the US fiscal cliff talks, while New York crude oil was quoting below USD 90 a barrel in Europe today.

In the United States, the fiscal cliff is a term used to refer to the economic effects that could result from tax increases, spending cuts and a corresponding reduction in the US budget deficit beginning in 2013 if existing laws are not changed by the end of 2012.

"In a quite range bound session against the US dollar, the rupee closed on a weaker note. Fresh dollar demand from banks and importers also continued to put pressure on the rupee.

"Year-end buying pressure will further put pressure on the rupee and could drift it towards 55.00 levels once again," said Abhishek Goenka, Founder and CEO, India Forex Advisors.

The premium for the forward dollar reacted downwards on fresh receipts by exporters.

The benchmark six-month forward dollar premium payable in May moved down to 160-162 paise from Wednesday's close of 163-1/2-165-1/2 paise.

Far-forward contracts maturing in November also settled down at 308-1/2-310-1/2 paise from 312-314 paise.

The RBI has fixed the reference rate for the US dollar at 54.8420 and for euro at 72.4667.

The rupee also turned negative against the pound sterling to end at 89.28 from Wednesday's close of 88.90 and declined against the euro to 72.75 from 72.43.

It dropped further against the Japanese yen to 65.23 per 100 yen from previous close of 64.62.

PTI