Forex Update: Rupee closes 59 points down against dollar at 13-month low

The rupee on Tuesday plunged for the second day in a row by 59 paise - biggest fall in more than four month- to close at 13-month low of 63.53 against the Greenback on distinctly weak local stocks amid sustained heavy dollar deamand from importers and some banks.

Persistent capital outflows too weighed on the rupee while steep fall in US dollar overseas could not able to impact poitively on the rupee, a forex dealer said.

Weakness in financial market abroad following continued downslide in global crude oil (Brent) prices below $ 60 a barrel amid fall in Chinese manufacturing data also put pressure on the local currency.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced sluggish at 63.25 a dollar from last close of 62.94 and immediately touched a high of 63.20.

But sustained sell-off in domestic equities pulled it down to a low of 63.5950 before concluding at 63.53, revealing a fall of 59 paise or 0.94 per cent. On Monday, it has tumbled by 65 paise or 1.04 per cent and previously was closed at 63.71 on November 12, 2013.

Completing four-session of losing string, the benchmark S&P BSE Sensex on Tuesday collapsed by 538 points or 1.97 per cent while FPIs pulled out $63.48 mln on Monday as per Sebi data.

A gauge of six major global rivals, the dollar index was down by a sharp 0.53 per cent.

Mr. Pramit Brahmbhatt, CEO, Veracity Group CEO said," Today also Indian Rupee dropped down by nearl one percent during the day, taking cues from the dollar demand from oil companies which dented the Rupee movement. RBI intervention was also seen in the market but was not able to support the Rupee. The trading range for the Spot rupee is expected to be within 63.20 to 64.00".

In forward market, premia recovered on fresh payments from banks and corporates.

The benchmark six-month premium payable in May edged up to 202-204 paise from 201.5-203.5 paise previously and forward contracts maturing in November 2015 also recovered to 407-409 paise from 404-406 paise.

The Reserve Bank of India (RBI) fixed the reference rate for dollar at 63.4135 and for the Euro at 79.0005.

The rupee plummeted further against the pound to 99.84 from Monday's close of 98.61 and also dived to 79.47 per euro from 78.223.

It too nose-dived to 54.64 per 100 Japanese yen from 53.05.