Rupee snaps 2-week gaining streak; closes at 54.37 Vs dollar

Rupee snaps 2-week gaining streak; closes at 54.37 Vs dollar Mumbai: The Indian rupee snapped its fortnight gains by slipping 41 paise to end the week at 54.37 against the American currency on heavy month-end dollar demand from importers and banks, despite good capital inflows from foreign funds.

Firm dollar at the overseas also affected the rupee value against the dollar, a forex dealer said.

The rupee resumed steady at 53.96 against the American currency at the Interbank Foreign Exchange (Forex) market and hovered in wide range of 53.92 per dollar and 54.42 per dollar before ending the week at 54.37 per dollar, showing a net loss of 41 paise or 0.76 percent.

In previous two weeks it had gained by 85 paise or 1.55 percent.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said after trading strong for two weeks Rupee traded weak, taking cues from strong dollar which traded on the high side during the week, but the strong local equities tried to support rupee with the help of foreign funds which have been poured in over USD 500 million in equities in the past 4 days.

On May 3 the Reserve Bank of India (RBI) is likely to cut interest rates for a third time this year, as this time India's inflation dropped to its lowest in more than three years during March, at 5.96 percent.

Meanwhile, the BSE benchmark Sensex rose by 270.26 points or 1.42 percent to 19,286.72.

The rupee premium for the forward dollar finished lower on sustained receipts by exporters.

The rupee premium for the benchmark six-month forward dollar payable in September closed down at 154-1/2-156 paise as against the last weekend's level of 163-1/2-165-1/2 paise and far-forward contracts maturing in March also ended lower at 321-323 paise as against 329-1/2-331-1/2 paise.

The RBI fixed the reference rate for the US dollar at 54.2935 and for euro 70.6750 as against the last weekend's level of 54.0298 and for euro 70.4933.

The rupee turned lower against the pound sterling to 84.07 from preceding weekend's level of 82.38 and also declined against the euro to 70.70 from 70.48 previously.

It also moved down against the Japanese yen to settle at 55.07 per 100 yen from last weekend's level of 54.85 per 100 yen.

PTI