Forex update: Rupee closes 8 paise lower at 63.61 on capital outflows

The rupee on Wednesday, falling for the third day in row, fell by 8 paise to close at 63.61 against the US dollar due to persistent capital outflows.

Consistent demand for American unit from importers too weighed on the rupee negatively, forex dealers said.

At the Interbank Foreign Exchange (Forex) market, the rupee commenced remarkably lower at 63.80. With domestic stock markets also looking sluggish, the domestic unit fell further to a low of 63.89.

Some recovery in local equities and dollar selling by exporters and some banks helped the rupee to rise to 63.49 before settling at 63.61, logging a fall of 8 paise (or 0.13 per cent).

The domestic currency has declined by 132 paise (or 2.12 per cent) in three days of losses.

The dollar index was up by 0.33 per cent against a basket of six major global currencies.

In the forward market, the benchmark six-month premium payable in May ended at its overnight closing level of 202-204 paise. Forward contracts maturing in November 2015 ended at 406-408 paise as against 407-409 paise previously.

The Reserve Bank of India (RBI) fixed the reference rate for dollar at 63.58 and for euro at 79.39.

The rupee remained weak against the pound to end at 100.02 from 99.84 on Tuesday while recovered to 79.19 per euro from 79.47. The domestic currency also rebounded to 54.35 per 100 Japanese yen from 54.64.

Meanwhile, the benchmark Bombay Stock Exchange (BSE) index Sensex, which fell by over 310 points in early trade, ended the day's trade with a loss of 71.31 points (or 0.27 per cent).

Foreign portfolio investors (FPIs) had pulled out US $190.60 million on Tuesday, as per data provided by capital market regulator Securities and Exchange Board of India (Sebi).