Rupee closes 2 paise down against USD

Snapping its two-day rising trend, the rupee slipped marginally by two paise at 66.43 against the US dollar on good demand for the greenback from banks and importers.

The domestic unit resumed lower at 66.72 as against yesterday's closing level of 66.41 at the Interbank Foreign Exchange (Forex) market and fell further to 66.76 on initial dollar demand from banks and importers.

However, it recovered afterwards to 66.42 on selling of dollars by exporters in view of recovery in the equity market, but still ended down by 2 paise, or 0.03 per cent, at 66.43.

The domestic currency had gained 41 paise, or 0.62 per cent, in last two trading sessions.

It hovered in a range of 66.42 to 66.76 during the day.

The dollar index was quoted higher by 0.15 per cent against a basket of six currencies in afternoon trade.

Crude oil prices fell in early Asian trade as weak Japanese and Chinese economic data fuelled concerns that low levels of investment could further erode already slow growth in Asia.

In New York, the dollar trimmed early gains against the yen and the euro yesterday, but remained higher against both even as falling Treasury yields dulled the dollar's luster. Meanwhile, the benchmark BSE Sensex ended lower by 97.41 points, or 0.38 per cent, at 25,622.17.

In forward market today, the premium for dollar fell on fresh receivings from exporters.

The benchmark six-month premium payable in February eased to 199-201 paise from 203-205 paise yesterday and far forward August 2016 contracts also fell to 414-416 paise from 417-419 paise.

The RBI fixed the reference rate for the dollar at 66.5840 and for the euro at 74.7139.

The rupee fell against the pound sterling to close at 102.32 as against 102.00 yesterday and also declined against the euro to 74.34 from 73.99.

However, it recovered against the Japanese currency to finish at 54.81 per 100 yen as against 54.99 yesterday.