Indian rupee breaks three-day winning run,down 13p vs US dollar

At the Interbank Foreign Exchange (Forex) market,the domestic unit resumed lower at 54.42 a dollar from last weekend’s close of 54.28 and declined further to a low of 54.52 on initial hesitancy in share markets and dollar demand from importers,mainly oil refiners,and some banks.

However,it later recovered on dollar selling by exporters and sustained capital inflows to a high of 54.17. However,it again fell back at the fag-end in tandem with equities to settle at 54.41 — a fall of 13 paise or 0.24 per cent.

The rupee gained 64 paise or 1.17 per cent in previous three sessions tracking buoyant stocks markets.

The dollar index was quoting up by nearly 0.1 per cent against a basket of six major global units.

“The rupee was seen reacting to the export import figures for February,which released today. The increase in exports came out as a surprise to the market and it made rupee to gain against the dollar at mid-session. But internationally,the factors were pointing towards weakness in rupee,which led the rupee to close down,” said Abhishek Goenka,Founder & CEO,India Forex Advisors.

Meanwhile,the Indian benchmark S&P BSE Sensex in volatile trade closed down by 37.02 points or 0.19 per cent,snapping its straight four-session rally.

Market participants are now waiting for the outcome of the index of industrial production for January and consumer inflation data to be announced tomorrow. The inflation data based on wholesale price index (WPI) for February is likely to be released on Thursday.