Rupee ends 7 paise lower against dollar

The rupee ended lower by 7 paise to 62.31 against the American currency on fresh dollar demand from banks and importers as the greenback firmed up overseas on upbeat US jobs report.

The rupee resumed lower at 62.30 per dollar against the last closing level of 62.24 at the Interbank Foreign Exchange (Forex) market and dropped further to 62.42 per dollar on initial dollar demand from banks.

However, it recovered to 62.29 per dollar on some dollar selling from banks on the back of good foreign capital inflows into equity market before ending at 62.31, showing a loss of seven paise or 0.11 per cent.

It moved in a range of 62.29 and 62.42 per dollar during the day. Fresh dollar demand from banks and importers in the view of firm dollar in the overseas market mainly affected the rupee value against dollar, a forex dealer said. In the international market, the dollar came off its overnight highs today in Asia as a rebound built on renewed hope of a US interest-rate rise in the coming months lost steam.

The dollar index, a gauge of six major global rivals, was up by 0.38 per cent today.

The greenback rose to three-week highs against the euro and the yen in the New York market yesterday, recouping all the losses made after disappointing jobs data last week that caste doubt on the strength of the US labour market.

Oil prices were trading mixed in Asia after recovering from a steep dive, with buying sentiment shackled by a global supply glut, analysts said.

Meanwhile, the Indian benchmark 30-share index Sensex declined marginally by 5.83 points or 0.02 per cent to 28,879.38.

In the forward market, premia dropped further on sustained receiving by exporters.

The benchmark six-month premium payable in September moved down to 224.5-226.5 paise from 230-230.5 paise yesterday and forward contracts maturing in March 2016 also fell to 447.5-459.5 paise from 456-457 paise previously.

The Reserve Bank of India fixed the reference rate for dollar at 62.3660 and for the euro at 66.4884.

The rupee firmed up further against the pound sterling to 91.09 from 92.35 yesterday and also advanced further against the euro to 66.01 from 67.01.

The local currency firmed up further against the Japanese Yen to 51.76 per 100 yens from 51.88 previously.