Rupee eases two paise vs US dollar to end at 60.20
The rupee on Monday ended a mere two paise lower at 60.20 against the US dollar on weak local equities and imported-driven demand for the American currency, extending losses for the second straight session. At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced better at 60.10 a dollar from previous close of 60.18.
It was trapped in a narrow range of 60.05 and 60.27 before settling at 60.20, a fall of a mere two paise or 0.03 per cent. On Friday, it fell by 10 paise. Sustained dollar demand from importers, mainly oil refiners, weighed on the rupee, a forex dealer said. “Rupee opened on a stronger note today helped by the Asian stocks after the upbeat Chinese PMI data.
But soon the gains were trimmed by increased concerns over the widening of the fiscal deficit as oil prices were seen rising further as the violence in Iraq showed no signs of abatement,” said Abhishek Goenka, Founder & CEO, India Forex Advisors. The benchmark S&P BSE Sensex on Monday moved down further by 74.19 points, or 0.30 per cent.
FIIs had pulled out Rs 220.65 crore last Friday, as per provisional data with exchanges. The dollar index was marginally down against its major global rivals. Meanwhile, global crude oil prices edged higher in Asia on continued violence in Iraq, but gains were capped as the risk premium associated with the crisis in the key crude producer is already factored in, analysts said.