ID :
171395
Mon, 03/28/2011 - 21:00
Auther :
Shortlink :
https://oananews.org//node/171395
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Rupee falls by 16 paise on strong dollar demand
Mumbai, Mar 28 (PTI) The rupee snapped its six-session
winning streak Monday faling by 16 paise against the US
currency due to fresh dollar demand from importers despite
bullish equities and increased capital inflows.
At the Interbank Foreign Exchange (Forex) market, the
domestic unit settled at 44.83/84, a loss of 16 paise over the
previous close.
"The rupee traded weaker throughout the day due to
sluggish euro and huge dollar demand by oil marketing
companies in India, as prices of crude rose considerably over
the last few days," Alpari Forex (India) CEO Pramit Brahmbhatt
said.
However, the positives in the stock market and good
capital inflows restricted a further decline of rupee, he
said.
"The trading range for the USD/INR will be between
44.55-45.05 tomorrow (Tuesday)," he added.
The domestic currency opened lower at 44.72/74 a
dollar from its last weekend's close of 44.67/68 and remained
in negative terrain throughout the day to touch a low of 44.90
before settling at 44.83/84.
In the last six straight trading sessions, it had
gained by 55 paise or 1.22 per cent.
Renewed dollar demand from importers, mainly oil
refiners to meet their month-end requirements, pushed the
rupee downwards as well as short-coverings of dollars from
some banks after decent fall, too, weighed on the rupee.
The US dollar extended its gains versus major
currencies last Friday in New York after a Federal Reserve
official said the Central Bank should aggressively tighten
monetary policy within a year.
However, the dollar index traded lower by 0.03 per
cent, against a basket of currencies in European market
Monday.
The Indian benchmark Sensex Monday rallied by another
127.50 points, or 0.68 per cent, to close at 18943 and Foreign
Institutional Investors (FIIs) pumped in USD 559.21 million in
the previous week.
Meanwhile, crude oil rose to USD 105.55 per barrel in
Asian trade Monday as the unrest in Libya and the Middle East
showed no signs of an end.
The rupee premium for the forward dollar closed
steady-to-slightly-better on stray paying pressure from banks
and corporates. The benchmark six-month forward dollar premium
payable in August finished stable at 138-140 paise.
Far-forward contracts maturing in February, however,
edged up to 280-282 paise from 279-281 paise previously.
The Reserve Bank of India has fixed the reference rate
for the dollar at Rs 44.78 and the euro at Rs 62.96.
The rupee continued to rule firm to end at Rs 71.64/66
against the pound sterling from last weekend's close of Rs
71.87/89 and also strengthened against the yen to Rs 54.90/92
per 100 yen from Rs 55.00/02 in the previous session.
It, however, recovered against the euro to Rs 62.94/96
from its last close of Rs 63.30/32.
winning streak Monday faling by 16 paise against the US
currency due to fresh dollar demand from importers despite
bullish equities and increased capital inflows.
At the Interbank Foreign Exchange (Forex) market, the
domestic unit settled at 44.83/84, a loss of 16 paise over the
previous close.
"The rupee traded weaker throughout the day due to
sluggish euro and huge dollar demand by oil marketing
companies in India, as prices of crude rose considerably over
the last few days," Alpari Forex (India) CEO Pramit Brahmbhatt
said.
However, the positives in the stock market and good
capital inflows restricted a further decline of rupee, he
said.
"The trading range for the USD/INR will be between
44.55-45.05 tomorrow (Tuesday)," he added.
The domestic currency opened lower at 44.72/74 a
dollar from its last weekend's close of 44.67/68 and remained
in negative terrain throughout the day to touch a low of 44.90
before settling at 44.83/84.
In the last six straight trading sessions, it had
gained by 55 paise or 1.22 per cent.
Renewed dollar demand from importers, mainly oil
refiners to meet their month-end requirements, pushed the
rupee downwards as well as short-coverings of dollars from
some banks after decent fall, too, weighed on the rupee.
The US dollar extended its gains versus major
currencies last Friday in New York after a Federal Reserve
official said the Central Bank should aggressively tighten
monetary policy within a year.
However, the dollar index traded lower by 0.03 per
cent, against a basket of currencies in European market
Monday.
The Indian benchmark Sensex Monday rallied by another
127.50 points, or 0.68 per cent, to close at 18943 and Foreign
Institutional Investors (FIIs) pumped in USD 559.21 million in
the previous week.
Meanwhile, crude oil rose to USD 105.55 per barrel in
Asian trade Monday as the unrest in Libya and the Middle East
showed no signs of an end.
The rupee premium for the forward dollar closed
steady-to-slightly-better on stray paying pressure from banks
and corporates. The benchmark six-month forward dollar premium
payable in August finished stable at 138-140 paise.
Far-forward contracts maturing in February, however,
edged up to 280-282 paise from 279-281 paise previously.
The Reserve Bank of India has fixed the reference rate
for the dollar at Rs 44.78 and the euro at Rs 62.96.
The rupee continued to rule firm to end at Rs 71.64/66
against the pound sterling from last weekend's close of Rs
71.87/89 and also strengthened against the yen to Rs 54.90/92
per 100 yen from Rs 55.00/02 in the previous session.
It, however, recovered against the euro to Rs 62.94/96
from its last close of Rs 63.30/32.