Rupee snaps 2-day gains vs dollar at close

There was fresh dollar demand from banks and importers

The rupee snapped its two-day winning run against the American currency on Thursday and ended the session lower by 5 paise at 66.24 on fresh dollar demand from banks and importers on the back of higher greenback in the overseas market amid fall in crude oil prices.

The rupee opened lower at 66.27 per dollar against Wednesday's closing level of 66.19 at the Interbank Foreign Exchange (Forex) market and hovered in a range of 66.17 per dollar and 66.29 per dollar before concluding at 66.24 per dollar, showing a loss of 5 paise or 0.08 per cent.

The domestic currency had gained by 29 paise or 0.44 per cent in the previous two days.

In the global market, the US dollar index, which tracks the greenback against a basket of six major rivals, was down by 0.07 per cent.

A semblance of stability in global equity markets after two-days of China-fuelled turmoil also provided some support for long bets on the dollar, market participants said. China markets will be closed for the remainder of the week for holidays.

Meanwhile, oil prices fell in Asia today followed a mixed US petroleum report that showed an increase in reserves but a dip in production.

US benchmark West Texas Intermediate for October delivery fell 45 cents to $45.80 while Brent crude for October slipped 38 cents to $50.12 in late-morning trade.

The benchmark BSE Sensex ended higher by 311.22 points or 1.22 per cent on Thursday.