Rupee off highs; global data disappoints

MUMBAI: The rupee was marginally weaker on Monday with the outlook negative as global sentiment, fuelled by weak US non-farm payrolls and Chinese non-manufacturing PMI, continued to hurt risk assets.

At 9:04 a.m., the partially convertible rupee was at 55.58/60 per dollar, weaker than its 55.54/55 close on Friday.

Besides the dollar's gains against the euro and other Asian currencies, a weak opening in the domestic stock markets following capital ouflows also put pressure on the Indian currency, forex dealers said.

The BSE benchmark Sensex fell by 161.62 points, or 1.01 per cent, at 15,803.54 in early trade today.

The rupee gained a whopping 54 paise to end at 55.54 against the dollar in Friday's trade on persistent dollar-selling by exporters amid RBI hinting at opening a separate dollar window for oil firms. But the currency still posted a ninth consecutive weekly drop -- its worst losing streak since the Lehman crisis.

Traders on Friday said a mid-sized infrastructure company sold about $200 million in early trade while two foreign banks also sold dollars heavily, helping the rupee gain.

"There was corporate dollar sales followed by NDF unwinding. Market seems to believe that yesterday's rumour about oil companies is right and that led to some long dollar unwinding," Hari Chandramgathan, a forex dealer with Federal Bank, said.

On Thursday, market participants were flooded with messages via text, email and messengers that the RBI had asked oil companies to buy dollars only via four state-run banks and only at one particular rate in an hour's time.

The market talk was, however, denied by senior officials from the central bank as also the oil companies.