Forex Update: Rupee falls 14 pts against dollar, ends at 1-wk low of 62.02

In a dull trade, the rupee dropped further by 14 paise to close at more-than one-week low of 62.02 against the Greenback following sustained dollar demand from importers amid fresh capital outflows, extending losses for the third straight day.

Some hesitancy in local equities and mostly stable dollar overseas has no major impact on the rupee, a dealer said.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 61.96 a dollar from previous close of 61.88.

It was later trapped in a narrow range of 61.91 and 62.0475 before settling at 62.02, a net fall of 14 paise or 0.23 pct. In three days in a row, it has dipped by 25 paise or 0.40 pct.

The Indian benchmark S&P BSE Sensex recovered marginally by 34.09 points or 0.12 pct in a choppy trade while FPIs/FIIs pulled out USD 35.99 mln yesterday, as per Sebi data.

Mr. Pramit Brahmbhatt, Veracity Group CEO said,"Rupee continues to be on a weaker side. Today also Rupee depreciated by fourteen paise. Rupee has traded weak for the third consecutive day and now investors are waiting for the U.S data which is due for the week. The outcome of the data will show the road ahead to the market."

"The trading range for the Spot USD/INR pair is expected to be within 61.70 to 62.30" he added.

In forward market, premia softened further on persistent receipts by exporters.

The benchmark six-month premium payable in May moved down to 214-216 paise from Tuesday's close of 215-217 paise.

Forward contracts maturing in November 2015 also slipped to 423-425 paise from 424.5-426.5 paise.

The Reserve Bank of India fixed the reference rate for dollar at 61.95 and for the Euro at 76.7499.

The rupee remained weak against the pound to 97.22 from 96.80 previously and declined further to 76.79 per euro from 76.47.

It, also dropped to 52.02 per 100 Japanese yen from 51.59.