Rupee continues to fall against USD for second consecutive week

Mumbai: The rupee continued to fall against the American currency for the second consecutive week, slipping by another 26 paise to nearly 3-1/2 week low of 61.62 per dollar on persistent dollar demand from banks and importers in view of higher dollar overseas despite heavy foreign capital inflows into equity market.

The rupee resumed lower at 61.50 per dollar as against last weekend's level of 61.36 per dollar at the Interbank Foreign Exchange (Forex) and hovered in a range of 61.3400 and 61.6750 per dollar before concluding the week at 61.62 per dollar, showing a loss of 26 paise or 0.42 per cent.

The renewed strength of dollar is keeping emerging market currencies under immense pressure, a forex dealer commented.

Veracity Group CEO Pramit Brahmbhatt said," Rupee traded range bound last week and ended slightly weak at 61.62. Last week we saw tussle between strong dollar and local equities which touched new milestone during the week.

"Strength in dollar dented the movement of rupee and nullified the positive effect of local equities on local currency. Expect rupee to appreciate in coming days if local equities continue to trade positively."

The trading range for the Spot USD/INR pair is expected to be within 61.00 to 62.00, he added.