FOREX UPDATE: Rupee down 55 paise, logs biggest fall in 2015

Logging its biggest fall of the year, the rupee on Monday plunged by 55 paise to close at over one-month low of 62.91 against the greenback amid sustained demand for dollars from importers.

Meanwhile, the benchmark Bombay Stock Exchange (BSE) Sensex stumbled by 555.89 points or 1.95 pct to end at three-week low of 27,886.21.

Dollar shortcoverings by exporters on the back of firm American unit overseas amid heavy capital outflows also kept the rupee under pressure, a forex dealer said.

At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced weak at 62.54 a dollar from last close of 62.36, but initially tried to recover to a high of 62.47.

Later, it met with strong resistance and tumbled to a low of 62.93 before settling at 62.91, showing sharp loss of 55 paise-biggest fall at 0.88 per cent in absolute term in 2015. It had concluded at 62.97 on March 13.

The dollar index, a gauge of six other major rivals, was up by 0.40 per cent following China's latest stimulus injection to spur growth.

The forward market, premia remained sluggish on persistent receiving by exporters.

The benchmark six-month premium payable in September eased further to 211-213 paise from last weekend's close of 214.5-216.5 paise and forward contracts maturing in March 2016 also dipped to 430.5-432.5 paise from 437-439 paise.

The Reserve Bank of India fixed the reference rate for dollar at 62.5633 and for the Euro at 67.4933.

The rupee dropped further against the pound sterling to 93.87 from 93.65 last Friday and also moved down against the euro to 67.55 per euro from 66.32, previously.

It also fell against the Japanese currency to 52.85 per 100 yens from 52.52 previously.