Indian rupee down 21 paise at 48.96/97 against US dollar

Snapping two days of gains,the rupee ended down by 21 paise at 48.96/97 against US currency on fresh month-end dollar demand from importers amid a weak dollar overseas.

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Snapping two days of gains,the Indian rupee ended down by 21 paise at 48.96/97 against US currency on fresh month-end dollar demand from importers amid a weak dollar overseas.

The dollar demand was so strong that renewed capital inflows could not stem the rupee fall,dealers said.

At the Interbank Foreign Exchange (Forex) market,the domestic unit opened weak at 49.08/09 a dollar from overnight close of 48.75/76 due to early weakness in equities.

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However,a sudden gust of dollar buying by importers,mainly oil refiners,to meet their monthly requirements weighed on the rupee and it fell back to a low of 49.15.

It concluded the day at 48.96/97,a fall of 0.43 per cent. In last two days,it had gained by 70 paise or 1.42 per cent.

“The rupee depreciated by almost half per cent on dollar buying by importers despite weak dollar against other major currencies and firm local equities,which closed up by over one and half per cent,” Alpari Financial Services (India) CEO Pramit Brahmbhatt said.

The dollar index,consisting of six major currencies,was down by nearly 0.4 per cent and New York crude oil was trading above USD 81 a barrel in European market today.

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The BSE benchmark Sensex,which was down by about 130 points in late morning deals,bounced back and closed up by over 252 points or 1.53 per cent.

FIIs injected USD 69.53 million in equities on September 27 and 28,as per Sebi data.

The Reserve Bank of India fixed the reference rate for the US dollar at Rs 48.9253 and for the Euro at Rs 66.6458.

The rupee premium for the forward dollar declined on fresh receivings by exporters. The benchmark six-month forward dollar premium payable in March ended weak at 87-90 paise from Wednesday’s close of 93-95 paise and far-forward contracts maturing in September also finished lower at 124-127 paise from 132-134 paise previously.

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The rupee fell back against the pound sterling to settle at Rs 76.57/59 from yesterday’s close of Rs 76.32/34 and also turned negative to end at Rs 66.63/65 per euro from Rs 66.54/56 previously.

It reacted downwards slightly against the Japanese yen to Rs 63.87/89 per 100 yen from last close of Rs 63.82/84.

The Forex and Money markets will remain closed tomorrow,September 30,on account of half yearly closing of banks’ accounts.