Rupee falls for 3rd session; lower by 2 paise vs dollar

MUMBAI: After a 4-day break, the rupee today continued its downward march against the American currency for the third session by falling 2 paise to 63.44 on persistent dollar demand from banks and importers.

The domestic currency opened lower at 63.54 as against the last weekend's level of 63.42 on initial heavy dollar demand from banks and importers and dropped further to 63.59.

However, it recovered from initial losses to 63.38 before concluding at 63.44 per dollar, showing a loss of 2 paise.

The rupee has dropped by 29 paise, or 0.46 per cent, in the last three trading sessions.

It hovered in the range of 63.59 and 63.38 intra-day. Pramit Brahmbhatt, Veracity Group CEO, said, "Today local equities closed lower which left Rupee alone to fight against the mighty". Though exporters & banks were seen selling dollar which helped Rupee to trade firm at 63.3850 in the afternoon before finishing at 63.44 per dollar.

The trading range for the Spot $/INR pair is expected to be within 63.00 to 63.80.

In the New York market, rising Treasury yields and a mixed reading on Eurozone manufacturing activity lifted the dollar against the currencies of major developed countries within the G-10 Monday, but it traded lower against several emerging-market rivals.

Meanwhile, the Indian benchmark sensex ended lower by 50.45 points of 0.18 per cent to 27,440.14.

In the forward market, the premium edged up on mild paying pressure from corporates.

The benchmark six-month premium payable in September inched up to 188.5-190.5 paise from 188-190 paise previously and forward contracts maturing in March 2016 finished steady at 401-403 paise.

The Reserve Bank of India fixed the reference rate for dollar at 63.5194 and for the euro at 70.5383.

The rupee turned higher against the pound sterling to 95.99 from 97.77 previously and firmed up against the euro to 70.67 from 70.95.

It also rose against the Japanese yen to 52.70 per 100 yen from Thursday's close of 53.33.