Rupee falls for 3rd day, ends at 55.21 vs US dollar

The rupee fell for the third day in a row to close at fresh a new two-month low of 55.21 against the dollar on Thursday, down by 9 paise following sustained dollar demand from importers.

However, firm stock markets and slightly weak dollar overseas amid continued foreign fund inflows capped the fall, a forex dealer said.

At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced higher at 55.08 a dollar against previous close of 55.12 and immediately touched a high of 55.01 on strong local stocks and weak dollar overseas.

Emergence of dollar demand from importers, mainly oil refiners, to meet their month-end requirements weighed on the rupee and it fell back to a low of 55.27 before concluding at 55.21, a fall of nine paise or 0.16 per cent.

 "The rupee reversed initial gains even after rising risk appetite in stock markets. The oil importers demand also checked the gains in the rupee," Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said.

The BSE benchmark Sensex on Thursday ended higher by 56.96 points or 0.31 per cent.