Rupee ends 6 paise down at 63.87 against dollar

In line with the equity market, the rupee fell by six paise to settle at 63.87 against the US dollar on fag-end demand for the greenback from importers.

The rupee resumed higher at 63.75 as against the last weekend's level of 63.81 at the Interbank Foreign Exchange (Forex) market and firmed up further to 63.73 on initial selling of dollars by banks and exporters amidst a strong equity market.

However, it dropped afterwards to 63.91 on good dollar demand from importers due to fall in crude oil prices before concluding at 63.87, showing a loss of six paise or 0.09 per cent.

The domestic currency had lost 13 paise, or 0.20 per cent, in last four trading days.

Banks and exporters preferred to sell dollars initially on hopes of foreign capital inflows in view of recovery in the equity market.

In the global market, the dollar recorded its second straight weekly gain against the euro and the yen after a strong reading on US labour-market growth in July.

Oil prices fell in Asian trade today, extending weeks of losses after a US report stoked expectations of a global glut of suppliers.

Meanwhile, the benchmark BSE Sensex fell by 134.67 points, or 0.48 per cent, to close at 28,101.72 today.

Veracity Group CEO Pramit Brahmbhatt said, "Not much movement was seen in the USD-INR currency pair as the rupee continued to trade in a thin range."

The trading range for the Spot USD/INR pair is expected to be within 63.50 to 64.25.

In the forward market, the premium for dollar continued to fall on persistent receivings from exporters.

The benchmark six-month premium payable in January declined further to 208-210 paise from 209.5-211.5 paise on last Friday and far-forward contracts maturing in July 2016 also fell further to 433-435 paise from 435.5-437.5 paise.

The RBI fixed the reference rate for the dollar at 63.75 and for the euro at 69.87.

The rupee recovered against the pound sterling to close at 97.06 from 99.03 on last Friday and fell further against the euro to 69.94 from 69.76.

The domestic currency dropped further against the Japanese currency to 51.26 per 100 yen from 51.20 previously.