Rupee loses 7 paise to 46.77/78 against US dollar

LD RUPEE

Mumbai, Aug 12 (PTI) The Indian rupee lost another 7
paise to end at nearly a 3-week low of 46.77/78 against the US
dollar Thursday due to firmness of the American currency
overseas amid weak domestic equity markets in the Asian
region.
Moving in tandem with local equities, the domestic unit
opened sharply lower at 46.95/97 a dollar from its overnight
close of 46.70/71 and breached the 47-mark to log a low of
47.05, a level not seen since July 26, 2010.
It later touched a high of 46.76 before settling the day
at 46.77/78 a dollar. This is the third straight day of losses
for the rupee against the US dollar.
Forex dealers said a smart rebound in the benchmark
Sensex after mid-session helped the rupee to recover major
part of its early losses.
The Indian benchmark Sensex, which was down by over 155
points in morning deals, bounced back to end with a moderate
gain of around 4 points. All the other Asian indices ended in
the red today and other Asian currencies also slid against the
dollar.
Dollar selling by exporters in the later part of the day
also helped the rupee recovery to some extent.
The dollar was up against a basket of currencies as
investors around the world reacted to the US Federal Reserve's
announcement late on Tuesday that it would reinvest proceeds
from maturing mortgage-backed securities back into government
debt so that its balance sheet doesn't shrink.
Meanwhile, snapping an eight-month trend of double-digit
growth, factory output slowed to 7.1 per cent in June from 8.3
per cent a year ago, while food inflation for the week ended
July 31 rose to 11.40 per cent from 9.53 per cent in the
previous week.
Global crude oil was trading around USD 80 a barrel in
London Thursday.
The rupee premium for the forward dollar ended sharply
lower on fresh paying pressure from banks and corporates. The
benchmark six-month forward dollar premium payable in January
dropped to 102-1/2-104-1/2 paise from 109-1/2-111-1/2 paise on
Wednesday and far-forward maturing in July also dipped to
181-183 paise from 193-1/2 paise previously.
The Reserve Bank of India has fixed the reference rate
for the dollar at Rs 46.94 and the euro at Rs 60.54.
In cross-currency trade, the domestic unit rose against
the pound sterling, the euro and the Japanese yen.
The rupee recovered against the pound sterling to end at
Rs 72.95/97 per pound from Wednesday's close of Rs 73.34/36.
It also firmed up against the euro to Rs 60.10/12 per euro
from Rs 60.68/70 previously.
In addition, it rose against the yen to finish at Rs
54.79/81 per 100 yen from its last close of Rs 54.97/99. PTI
VMP
RDM


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