Rupee hits 2-week low of 64.01 against dollar, down 3 paise

The rupee continued to decline for the third consecutive day against the US currency by slipping 3 paise to close above the 64-mark after nearly two weeks on dollar demand from importers coupled with higher greenback overseas.

The rupee resumed lower at 64.06 per dollar as against the last closing level of 63.98 per dollar at the Interbank Foreign Exchange (Forex) Market and dropped further to 64.16 per dollar before concluding at 64.01, showing a marginal loss of 3 paise or 0.05 per cent.

The rupee has dropped by 49 paise or 0.77 per cent in the last three days. The domestic currency had last ended at 64.00 on May 13, 2015.

It hovered in a range of 63.8950 and 64.16 per dollar during the day. Month-end dollar demand from importers, mainly oil refiners, affected the rupee value against the dollar, a forex dealer said.

Oil prices were marginally higher in Asian trade today, attempting a rebound after sharp losses of nearly 3 pct in the previous session on the back of a strong U.S. dollar.

The dollar index was up by 0.10 pct against a basket of six major global rivals in the late Asian trade today.

The dollar finished Tuesday’s North American session at its highest level against the yen since July 2007.

The U.S. currency also recorded strong gains against the euro.

Meanwhile, the Indian benchmark Sensex ended higher by 33.25 points of 0.12 pct today.

Pramit Brahmbhatt, Veracity Group CEO, said, "The rupee for the day ended near yesterday's close slightly on a weak note at 64.01 taking cues from strong dollar index."

However, exporters were seen selling dollar which saved the rupee from falling further, he added. The trading range for the Spot USD/INR pair is expected to be within 63.60 to 64.40. In the forward market, the premium dropped further on sustained receivings from exporters.

The benchmark six-month premium payable in October moved down further to 192-194 paise from 195-197 paise while forward contracts maturing in April 2016 also dropped further to 410.5-412.5 paise from 416.5-418.5 paise previously.

The Reserve Bank of India fixed the reference rate for dollar at 63.9475 and for the euro at 69.8562.

The rupee recovered against the pound sterling to 98.47 from 98.58 previously and also rebounded against the euro to 69.63 from 69.87.

The domestic currency firmed up further against the japanese currency to 51.78 per 100 yen from 52.17 yesterday.