Re falls for first time in 3 days, down by 5 paise

In lacklustre trade, the rupee on Friday fell for the first time in three days weakening by five paise to end at 54.33 against dollar amid continued worries over political stability and the Cyprus issue keeping global financial markets on tenterhooks.

Hopes of foreign fund inflow in the government's 5.82 per cent offer for sale in Steel Authority of India Ltd, helped the rupee limit losses, said a forex dealer.

The rupee started lower at 54.35 a dollar from overnight close of 54.28 at the Interbank Foreign Exchange market in Mumbai on Friday.

Trading was later confined to a narrow range of 54.26 and 54.41 before the rupee concluded at 54.33, showing a fall of five paise or 0.09 per cent.

It had gained 9 paise in previous two sessions.

The dollar index was down by about 0.35

per cent against a basket of six major global units as yen strengthened against it and euro moved in a narrow range on uncertainty about whether Cyprus will be able to secure a bailout.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, "Rupee ended weak as equity markets closed on a bearish note. Looking at the global scenario, expect rupee to trade weak with political uncertainty which was reflected in the local equities.

We could see 55 levels (spot) as domestic concerns are coming at a time when investors are also growing concerned about foreign flows after Cyprus issue."

The Indian benchmark Sensex, in a high volatility, dipped by 57.27 points or 0.30 per cent, extending losses for the sixth straight trading day.

As per provisional data, FIIs net sold stocks worth Rs 14.2 crore (at stock exchange level).