Rupee ends down 7 paisa vis-a-vis US dollar

Snapping five-day winning streak, the Indian rupee on Thursday lost seven paise against the dollar at 61.70 due to fresh demand for the US currency from banks and importers even as strong capital inflows continued.

The rupee in early trade at the Interbank Foreign Exchange Market firmed up to 61.49 on initial selling of dollars by exporters in view of strong equity markets.

But all the gain was washed out due to to fag-end dollar demand from banks and importers.

The local currency dropped to 61.75 before concluding at 61.70, a loss of seven paise from its previous close.

The rupee in the previous five sessions had gained by 55 paise or 0.88 per cent.

Foreign portfolio investors infused 345.72 million dollars in the equity market yesterday, as per the Securities and Exchange Board of India's record.

The dollar index was down by 0.32 pct against a basket of six major global rivals.

The euro was slightly higher against the dollar in Asian trade today with many investors sitting on the sidelines ahead of a key European Central Bank policy meeting later the day.

The benchmark six-month rupee premium payable in June fell further to 192.5-194.5 paise from 196.5-198.5 paise on Wednesday and forward contracts maturing in December also finished lower at 392.5-394.5 paise from 393-395 paise.

The Reserve Bank of India fixed the reference rate for dollar at 61.6910 and for Euro at 71.4875.

The rupee also dropped to 93.61 from per pound from 93.25 Wednesday and declined to 71.73 pe euro from 71.36 per euro.

The rupee eased further against the Japanese yen to 52.42 per 100 yen from 52.39 previously.