Rupee falls 26 paise on fresh dollar demand

Strong rebound in local equities restricted the rupee's fall

The rupee ended lower by 26 paise at 62.67 against the US currency due to renewed month-end demand from importers for the dollar.

Fresh capital outflows and dollar gains in overseas markets also weighed on the rupee, while strong rebound in local equities restricted the rupee's fall, a dealer said.

At Interbank Foreign Exchange (Forex) market, the domestic currency resumed weak at 62.55 per dollar from previous close of 62.41 and moved in a range of 62.6900 and 62.5225 before concluding at 62.67, a fall of 26 paise or 0.42 per cent.

On Friday, it had gained 26 paise or 0.41 per cent.

Dollar buying by importers, mainly oil refiners, to meet their month-end requirements affected the rupee value.

The dollar index, a gauge of six major global rivals, was up by 0.46 per cent in the late Asian trade on Monday.

The dollar was slightly better against the yen and euro in Asian trade today, with many market participants avoiding strong positions ahead of key data including the US labour data slated for later this week.

The BSE Sensex ended higher by 517 points after eight days of sluggish trend on the back of firm Asian cues.

FPIs sold shares worth Rs 320.52 crore last Friday, as per provisional data.