Rupee falls for fourth straight week, ends at nearly sixth week low

Mumbai: The Indian rupee continued to fall against the American currency for the fourth straight week, dropping by 49 paise to close at nearly sixth week low at 65.76 per dollar on sustained dollar demand from banks and importers amidst continued fall in equity market.

Persistent foreign capital outflows also affected the rupee value against the dollar, a forex dealer said.

Foreign portfolio investors (FPIs) continued their selling pressure as they sold shares of net worth Rs 1,085.07 crores during the week as per the SEBI's record, including the provisional figure of November 6.

The domestic currency resumed the week lower at 65.39 per dollar as against last weekend's level of 65.27 at the Interbank Foreign Exchange (Forex) market and dropped further to 65.84 before closing at nearly sixth week low at 65.76 per dollar, showing a loss of 49 paise or 0.75 percent.

The rupee has tumbled by 102 paise or 1.58 percent in four weeks. It had last ended at 65.96 on September 29, 2015.

Globally, the euro finished the week just above a six month low reached after a blockbuster October jobs report.

The dollar rose against the euro and the yen as the US government bond yields rose to their highest levels in nearly seven weeks as investors have been lightening up on their bond holdings following the Fed's signal a week ago that a rate increase before the end of this year remains on the table.

The ICE US dollar index, a measure of the dollar's strength against a basket of six currencies, was up 2.4 percent to end the week at 99.1900, just below a six-month high.

In forward market, the premium for dollars recovered on paying pressure from banks and corporates.

Forward dollar premium payable in April rose to 203-205 from last weekend's level of 173-175 paise and far-forward contract maturing in October 2016 also moved up to 410-412 paise from 388-390 paise previously.

The RBI fixed the reference rate for the dollar at 65.7910 and the Euro at 71.5477 from last weekend's level of 65.2231 and 71.6671 respectively.

The rupee climbed against the pound to finish the week at 99.51 from last weekend's level of 100.22 and strengthened further against the euro to 71.51 from 71.87 previously.

The domestic unit also rose against the Japanese currency to close at 53.94 per 100 yen from last weekend's level of 54.19.