Rupee loses 22 paise to end at 7-month low of 61.75

T he rupee on Tuesday lost 22 paise to end at almost seven-month low of 61.75 against the dollar as month-end demand for the US currency from oil importers weighed on the local unit.

Sluggish local equities after the Reserve Bank today kept key rates unchanged in its monetary policy and slowdown in foreign fund inflows put some pressure on the rupee, a forex dealer said.

The dollar index was sharply up by 0.60 per cent against a basket of six major global units. It was also up against other Asian units.

At the Interbank Foreign Exchange (Forex) market here, the domestic currency commenced lower at 61.60 from last close of 61.53.

It moved in a range of 61.82 and 61.55 before concluding at 61.75, a fall of 22 paise or 0.36 per cent from its last close. Yesterday, it had plunged by 38 paise or 0.62 per cent.

Last time the rupee settled at this level was on March 5 when ended at 61.75.

Meanwhile, the benchmark S&P BSE Sensex today closed better by 33.40

points after surrendering early gains.

Foreign institutional investors injected $37.70 million yesterday, as per Sebi data.

Pramit Brahmbhatt, Veracity Group CEO, said: "Today range-bound local equities and the month-end dollar demand from oil importers forced the rupee to depreciate to 61.75.

"Also the dollar continues to trade high at USD 86.06 strongest level since July 2010 versus a basket of major currencies ....

In forward market, premium dropped further on consistent receipts by exporters.

The benchmark six-month premium payable in February dipped to 193-195 paise from 203-205 paise previously.

Far-forward contracts maturing in August, 2015 also tumbled to 436-438 paise from 454-456 paise.

The Reserve Bank of India fixed the reference rate for dollar at 61.6135 and for the euro at 78.2060.

The rupee, however, recovered slightly against the pound to 99.91 from overnight close of 99.94 and also rebounded to 77.68 per euro from 78.16.

It too edged up to 56.24 per 100 Japanese yen from 56.28.