Rupee snaps 3-day losing streak against dollar; closes 21 paise up

The rupee snapped its 3-day losing streak against the US dollar by ending 21 paise higher at 63.80 on fresh selling of the greenback by banks and exporters.

However, month-end dollar demand from importers, mainly oil refiners, restricted the rupee's gains, forex dealers said.

The rupee resumed higher at 63.95 as against yesterday's closing level of 64.01 at the Interbank Foreign Exchange (Forex) and firmed up further to 63.75 before ending at 63.80, showing a gain of 21 paise or 0.33 per cent.

The local currency had dropped 49 paise, or 0.77 per cent, in last three days.

During intra-day trading, it hovered in a range of 63.75 and 64.00 per dollar.

However, the dollar hit its highest level in more than 12 years against the yen today, with the US currency’s rapid pace of gains putting market participants on alert for any signs of discomfort from the US and Japan.

Meanwhile, the benchmark BSE Sensex declined by 57.95 points, or 0.21 per cent, to end at 27,506.71.

Veracity Group CEO Pramit Brahmbhatt said," Fresh selling of the US currency by exporters and banks supported the rupee even though weak local equities and strong dollar capped its gains."

The trading range for the Spot USD/INR pair is expected to be within 63.50 to 64.20, he added.

In the forward market, the premium dropped further on persistent receivings by exporters.

The benchmark six-month premium payable in October moved down further to 187-189 paise from 192-194 paise while forward contracts maturing in April 2016 also dropped further to 403-405 paise from 410.5-412.5 previously.

The Reserve Bank of India fixed the reference rate for dollar at 63.9010 and for the euro at 69.7352.

The rupee firmed up further against the pound sterling to 97.50 from 98.47 previously and also advanced further against the euro to 69.54 from 69.63. Besides, the rupee moved up further against the Japanese currency at 51.35 per 100 yen from 51.78 yesterday.