Forex update: Rupee closes 6 paise lower at 63.57 against US dollar

The rupee fell by six paise on Friday, continuing its losing streak for the third straight session, to close at 63.57 against the Greenback due to sustained month-end dollar demand from importers and capital outflows.

A modest recovery in the domestic equity market, however, capped the fall in the local unit to some extent while the dollar index was almost stable in overseas market in thin trade.

At the Interbank Foreign Exchange (Forex) market, the rupee resumed better at an intra-day high of 63.45 a dollar from its previous close of 63.51 on Wednesday.

However, the domestic currency later fell back on continued month-end dollar demand from importers, mainly oil refiners, and persistent capital inflows to am intra-day low of 63.70. The rupee recovered some ground to settle at 63.57, with a fall of six paise (or 0.09 per cent).

In a lacklustre trade on Friday, the benchmark Bombay Stock Exchange (BSE) index Sensex on Friday edged higher by 33.17 points (or 0.12 per cent), breaking a two-day falling trend.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth Rs 2,808.27 crore on Wednesday, according to provisional data released by the bourses.

Pramit Brahmbhatt, Veracity Group CEO, said, "...Indian Rupee traded weak and depreciated by six paise, taking cues from FIIs profit booking and dollar demand from oil companies. The trading range for the spot rupee is expected to be within 63.20 to 64.00. In the forward market, premia continued to trade weak on sustained receipts by exporters. The benchmark six-month premium payable in May declined to 189.5-191.5 paise from 192.75-194.5 paise previously. Forward contracts maturing in November 2015 dropped to 394.5-396.5 paise from 399.5-401.5 paise."

The Reserve Bank of India fixed the reference rate for dollar at 63.6355 and for euro at 77.7435.

Among other foreign currencies, the rupee moved down further to 98.93 against the pound from 98.72 and softened further to 77.48 per euro from 77.44. The domestic currency also slipped against Japanese yen from its previous close of 52.73 to 52.85 per 100 Japanese yen.