MUMBAI: Paring all of its initial gains, the rupee closed flat today at 44.43/44 against the US currency due to late dollar demand from importers, in tandem with local equities amid increased capital outflows.
At the Interbank Foreign Exchange (Forex) market, the domestic currency opened strong at 44.29/30 a dollar from its last close of 44.43/44 and immediately touched a high of 44.25 in line with early rebound in equities.
However, fall in local shares pulled it down to settle at overnight closing level of 44.43/44.
"Rupee started on a positive note in the morning, but lost its steam in the afternoon trade, mostly due to pressure from high dollar demand by oil importing companies and weak stock market," Alpari Forex (India) CEO Pramit Brahmbhatt said.
At the Interbank Foreign Exchange (Forex) market, the domestic currency opened strong at 44.29/30 a dollar from its last close of 44.43/44 and immediately touched a high of 44.25 in line with early rebound in equities.
However, fall in local shares pulled it down to settle at overnight closing level of 44.43/44.
"Rupee started on a positive note in the morning, but lost its steam in the afternoon trade, mostly due to pressure from high dollar demand by oil importing companies and weak stock market," Alpari Forex (India) CEO Pramit Brahmbhatt said.
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"However, dollar's weakness in the international market, prevented further weakening of rupee. The trading range for the USD/INR will be between 44.30-44.70 tomorrow," he added.
Extending losses for the fourth straight session, the Bombay Stock Exchange benchmark Sensex today closed down by nearly 157 points, or 0.81 per cent, to settle at 19,292.
Foreign Institutional Investors (FIIs) sold shares worth USD 425.97 million in three sessions since April 25, which also weighed on the rupee in the later part of the day.
Late dollar demand from importers, mainly oil refiners, to meet their monthly requirements too put pressure on the rupee, surrendering its initial gains.
Meanwhile, New York crude was trading above USD 113 a barrel, while London brent crude was quoting below USD 125 a barrel today.
The rupee premium for the forward dollar continued to rule weak on sustained receivings by exporters. The benchmark six-month forward dollar premium payable in September settled down at 132-134 paise from 135-136 paise Wednesday.
Far-forward contracts maturing in March also concluded lower at 285-287-1/2 paise from previous close of 288-290 paise.
The Reserve Bank of India has fixed the reference rate for the dollar at Rs 44.33 and the euro at Rs 65.78.
The rupee dropped further against the pound sterling to end at Rs 74.00/02 from Wednesday's close of Rs 73.57/59 and remained weak against the euro to Rs 65.77/79 from Rs 65.20/22 in the previous session.
It, however, fell back against the Japanese yen to Rs 54.38/40 per 100 yen from its last close of Rs 54.05/07.
Extending losses for the fourth straight session, the Bombay Stock Exchange benchmark Sensex today closed down by nearly 157 points, or 0.81 per cent, to settle at 19,292.
Foreign Institutional Investors (FIIs) sold shares worth USD 425.97 million in three sessions since April 25, which also weighed on the rupee in the later part of the day.
Late dollar demand from importers, mainly oil refiners, to meet their monthly requirements too put pressure on the rupee, surrendering its initial gains.
Meanwhile, New York crude was trading above USD 113 a barrel, while London brent crude was quoting below USD 125 a barrel today.
The rupee premium for the forward dollar continued to rule weak on sustained receivings by exporters. The benchmark six-month forward dollar premium payable in September settled down at 132-134 paise from 135-136 paise Wednesday.
Far-forward contracts maturing in March also concluded lower at 285-287-1/2 paise from previous close of 288-290 paise.
The Reserve Bank of India has fixed the reference rate for the dollar at Rs 44.33 and the euro at Rs 65.78.
The rupee dropped further against the pound sterling to end at Rs 74.00/02 from Wednesday's close of Rs 73.57/59 and remained weak against the euro to Rs 65.77/79 from Rs 65.20/22 in the previous session.
It, however, fell back against the Japanese yen to Rs 54.38/40 per 100 yen from its last close of Rs 54.05/07.
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- copied from http://articles.timesofindia.indiatimes.com/2011-04-28/india-business/29482517_1_rupee-premium-dollar-demand-monthly-requirements
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