Indian rupee closes down 31 paise against US dollar at 64.06

14/06/2015 11:01 AST

The rupee plunged by 31 paise to close the week at 64.06 against the American currency on fresh demand from banks and importers owing to a firm dollar in the overseas market amids foreign capital outflows.

Fall in the equity market in view of cautious approach of investors over concerns of a deficient monsoon for the second consecutive week also affected the rupee sentiments.

The Indian currency started lower at 64.05 a dollar from last weekend’s close of 63.75 at the Interbank Foreign Exchange (Forex) market and dropped further to a low of 64.1675 before concluding at 64.06, disclosing a loss of 31 paise or 0.49 per cent from its preceding weekend. It hovered in a range of 63.7450 and 64.1675 during the week.

Foreign investors pulled out USD 388.81 million during the first four days of the week as per the SEBI’s record.

In the global market, the dollar traded higher against its rivals , as worries surrounding Greece continued to deepen, though some investors were headed to the sidelines ahead of next week’s US Federal Open Market Committee meeting.

Mr Pramit Brahmbhatt, Veracity Group CEO said,” Rupee ended lower following weak local equities”. Traders preferred to stay cautious in the unsure market.

The trading range for the spot dollar-rupee pair is expected to be within 63.60 to 64.40, he added.

Meanwhile, the Indian sensex continued to fall for the third consecutive week, tumbling by 343.19 points or 1.28 per cent during the current week.

In the forward market, the premium ended lower on receivings from exporters.

Forward dollar premium payable in November finished lower at 209.5-210.5 from last weekend’s level of 217-219 paise and far-forward contract maturing in May 2016 also closed down at 433.5-434.5 paise from 440.5-442.5 paise.

The RBI fixed the reference rate for the US dollar at 64.0301 and the euro at 71.8994 from preceding weekend’s level of 63.8955 and 71.8185, respectively.

The rupee tumbled further against the pound sterling to end the week at 99.28 from 97.66 previous weekend and also moved down further to 71.68 per euro from 71.62.

The domestic currency fell back against the Japanese to end at 51.79 per 100 yen from preceding weekend’s level of 51.13.

PTI