Forex update:Rupee falls by 30 paise against US dollar, snaps four days of gains

Snapping a four-day gaining spree, the rupee on Friday fell by 30 paise to close at 61.35 against the Greenback on fresh demand for the American unit from banks and importers due to firm dollar overseas and sharp fall in the domestic equity market.

The rupee resumed lower at 61.15 per dollar as against Thursday's closing level of 61.05 at the Interbank Foreign Exchange (Forex) and dropped further to 61.36 per dollar before concluding the day at 61.35, a loss of 30 paise (or 0.49 per cent).

"Rupee traded weak today taking cues from strong dollar overseas and weak local equities. After depreciating for four continuous weeks, rupee posted its first weekly gain this week," said Pramit Brahmbhatt, CEO, Veracity Group.

The domestic unit had gained 70 paise (or 1.13 per cent) in the last four days.

Intra-day, the rupee moved in a range of 61.11 and 61.36 per dollar.

Meanwhile, foreign portfolio investors (FPIs) continued pulling out from local equities and sold shares worth Rs 719.77 crore on Friday.

In New York, the US dollar traded higher against its major rivals in Thursday's trade after the eye-catching plunge in German exports raised fears of a recession in Europe's largest economy.

Crude oil prices fell to a two-year low in the Asian trade as weak economic data from Germany underscored concerns over a global economic slowdown and its impact on energy demand.

In the Tokyo market, the US currency steadied against the euro and yen on Friday, though lower US yields capped its rebound after the Federal Reserve's dovish undertones sapped the dollar's recent strength.

Meanwhile, the benchmark Bombay Stock Exchange (BSE) Sensex dropped sharply by 339.90 points (or 1.28 per cent) to finish at 26,297.38.