Indian rupee down 35 paise at 49.29/30 on fresh US dollar demand

Snapping its two-session gaining streak,the Indian rupee today closed at a week's low of 49.29/30 after losing 35 paise against the US dollar amid fresh dollar demand from importers and a decline in stocks.

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Snapping its two-session gaining streak,the Indian rupee today closed at a week’s low of 49.29/30 after losing 35 paise against the US dollar amid fresh dollar demand from importers and a decline in stocks.

During the day,the local currency touched a low of 49.36 and a high of 49.065 at the Interbank Foreign Exchange (Forex) market here.

Fresh demand for the American unit from importers,mainly oil refiners,and some banks in view of dollar firmness in overseas markets kept the rupee under pressure throughout the day,dealers said.

The dollar index,a gauge of six major currencies,was up by over 0.2 per cent.

Meanwhile,the BSE benchmark Sensex declined by nearly 277 points,or 1.63 per cent,to 16,748.29,putting further pressure on the local currency.

The rupee premium for the forward dollar resumed low on sustained receivings by exporters,but later recovered to end stable on late paying pressure from banks and corporates.

The benchmark six-month forward dollar premium payable in March closed steady at 88-90 paise and far-forward contracts maturing in September also finished at its overnight closing level of 131-133 paise.

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The Reserve Bank of India fixed the reference rate for the US dollar at Rs 49.1360 and for the euro at Rs 67.5815.

The rupee reacted downwards against the pound sterling to settle at Rs 77.51/53 from Monday’s close of Rs 77.06/08 and also turned negative against the Japanese yen to Rs 64.27/29 per 100 yen from Rs 63.38/40.

It,however,rose slightly to Rs 67.45/47 per euro from last close of Rs 67.48/50.