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Rupee closes 19 paise lower at 63.66

PTI     July 20, 2015

The rupee on Monday closed 19 paise down at 63.66 against the US dollar on fresh demand for American currency from banks and importers on the back of a higher greenback in overseas markets.

The rupee resumed lower at 63.53 as against last weekend's level of 63.47 at the Interbank Foreign Exchange and dropped further to 63.67 before closing at three-week low of 63.66, showing a loss of 19 paise, or 0.30 per cent. It had last ended at 63.84 on June 29, 2015.

The local currency moved in a range of 63.67 and 63.53 during the day.

The dollar index was trading higher by 0.06 per cent against its major global rivals on Monday.

At the overseas market, the dollar hit a three-month high against a basket of major currencies after solid US inflation and housing data supported expectations for the Federal Reserve to raise interest rates in coming months.

Oil prices declined in Asia on Monday on a stronger dollar and concerns that a supply glut will worsen, following a landmark deal that will allow Iran to increase its crude exports.

A strong US currency makes dollar-priced oil more expensive, denting demand and leading to lower prices.

Lingering concerns about a return of Iranian oil to the international market kept up the pressure on prices.

Meanwhile, the benchmark 30-share Sensex fell by 43.19 points, or 0.15 per cent, to settle at 28,420.12.

In the forward market, the premium for dollar ended lower on sustained receivings from exporters.

The benchmark six-month premium payable in December moved down to 202.5-204.5 paise from the weekend's level of 203.5-205.5 paise and far-forward contracts maturing in June 2016 also declined to 429.5-431.5 paise from 431.5-433.5 on Sunday.

The RBI fixed the reference rate for the dollar at 63.5510 and for the euro at 68.8321.

The rupee recovered against the pound sterling to close at 99.04 paise from the last weekend's level of 99.15 and firmed up further against the euro to 69.03 from 69.11.

It fell against the Japanese currency to end at 51.26 per 100 yen from 51.17 previously.

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