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Indian rupee falls back 12 paise against US dollar to 63.50

BT Online Bureau     September 12, 2013
The Indian rupee surrendered its initial dominance and broke its five-day of gaining string, falling by 12 paise to close at 63.50 against the US dollar on negative local equities amid fresh dollar demand from importers.

However, sustained capital inflows restricted the fall to some extent, a forex dealer said.

The rupee resumed higher at 63.20 a dollar from previous close of 63.38 at the Interbank Foreign Exchange (Forex) market and improved further to a high of 62.92 on initial firm domestic stocks and continued dollar selling by exporters.

But, weakness in local equities and renewed dollar demand from importers weighed on the rupee and fell back to a low of 63.97 before recovering some ground to conclude at 63.50, a net fall of 12 paise or 0.19 per cent. In last five days, it had jumped by 425 paise or 6.28 per cent.

The benchmark Sensex on Thursday tumbled by 215.57 points, or 1.08 per cent, even as FIIs continued their buying spree and infused Rs 586.50 crore on Wednesday.

The dollar index, a gauge of six major global rivals, was almost stable.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said: "Today spot Rupee depreciated taking cues from negative local equity market which closed weak. Today the government will release July factory data and August retail inflation data after market hours. The outcome of data will help rupee to choose the road ahead. If the figures released in the data are better than the forecast then expect Rupee to open strongly tomorrow. The trading range for the spot USD INR pair is expected to be within 63.00 to 64.50."

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