Rupee closes 3 paise lower at 66.36 against USD

The rupee ended marginally lower by three paise at 66.36 against the US dollar on Tuesday on fresh demand for the American currency from banks and importers amidst fall in equity markets despite greenback's weakness in overseas markets.

The domestic unit resumed lower at 66.35 as against yesterday's closing of 66.33 at the Interbank Foreign Exchange (Forex) market and fell further to 66.48 before concluding at 66.36, showing a loss of three paise, or 0.05 per cent.

The rupee hovered in a range of 66.33 and 66.48 during the day.

It had yesterday closed higher by 21 paise, or 0.32 per cent.

The dollar index was down by 0.07 per cent against a basket of six currencies.

In New York, the US dollar ended lower against its major rivals late yesterday as investors wagered that the US Federal Reserve will keep key interest rates unchanged this month, but fears that the American central bank might surprise the market played on investors' minds.

Oil rates saw a mixed trend in Asia today as prices remained hobbled by weak demand and excess supplies.

US benchmark West Texas Intermediate for delivery in October climbed by 22 cents to USD 44.22, while Brent crude for October dipped six cents to USD 46.31.

Meanwhile, the benchmark BSE Sensex fell by 150.77 points, or 0.58 per cent, to settle at 25,705.93 today.

In the forward market, premium for dollar ended more or less steady today in the absence of market-moving factors.

The benchmark six-month premium payable in February eased to 192.5-194.5 paise from 193-195 paise yesterday while far-forward August 2016 contracts ended steady at 405-407 paise.

The RBI fixed the reference rate for the dollar at 66.4383 and for the euro at 75.0487.

The rupee fell against the pound sterling to close at 102.31 as against 102.24 yesterday but firmed up against the euro to 75.09 from 75.11.

It dropped against the Japanese currency to 55.43 per 100 yen from 55.14 yesterday.