Rupee settles day at 63.58 against US dollar

NEW DELHI: Amid wild intraday swings, rupee depreciated 3 paise to eventually close the session 63.58 against dollar, ahead of the release of US home sales data scheduled later in the day.

The domestic currency hit an intraday high of 63.51 and a low of 63.62 during the session.

The local unit had closed 11 paise higher at 63.55 against the greenback in the preceding session amid fresh selling of dollars by banks and exporters on good foreign capital inflows into the equity markets.

Dollar index, which tracks the movement of dollar against a trade-weighted basket of six major world currencies, inched down to 97.19.

Expert believe that the greenback may strengthen going ahead.

"The divergence of monetary policies around the world certainly favour a stronger US dollar and that will probably continue going forward. The ECB has made it clear that QE is going to continue until September 2016 as planned. The Bank of Japan is still wrestling with low inflation and seems to be getting even lower," said James McCormack of Fitch Ratings, in an interview to ET Now.

There is more than 50-50 chance that the US Fed will raise interest rates in its September policy review, said St Louis Fed President James Bullard on Monday. "So we think there will be still further easing there (in Japan) and the Fed is moving towards tightening mode," McCormack said.

Euro was up 0.10 per cent at 1.0946 against the US currency.