FOREX UPDATE: Rupee ends 31 paise lower after initial gains

Moving in line with the equity market, the Indian rupee washed out initial gains and ended lower by 31 paise to 61.41 against the American currency on fresh dollar demand from banks and importers on the back of recovery of dollar in the global market.

Persistent foreign capital outflows also affected the rupee sentiment, a forex dealer said.

The rupee opened higher at 60.94 per dollar as against the last closing level of 61.10 per dollar at the Interbank Foreign Exchange (Forex) Market on initial selling of dollars by banks following overnight losses in the New York market.

However, it washed out initial gains and ended lower at 61.41 per dollar on good dollar demand from importers in view of firm dollar overseas, showing a loss of 31 paise or 0.51 per cent.

It moved in a range of 60.93 per dollar and 61.46 per dollar during the day.

In New York market, the dollar continued to weaken against its rivals on Monday on a day devoid of major data releases out of Europe and the U.S.

In the London market on Tuesday, the dollar recovered its footing in Europe today after sinking to its lowest in a month against the yen amid deepening worries over global growth and an equities sell-off.

Meanwhile, the benchmark Sensex ended lower by 34.74 points 0.13 per cent to 26,349.33.

Forex and Money markets will remain closed on Wednesday on the account of voting for single-phase Assembly Elections in Maharashtra.