Rs dips 48p to 1-month low of 61.13 a $; worst fall in 5 weeks

Strong surge in dollar overseas also kept the rupee under pressure while sustained capital inflows could not have desirable impact on the rupee, a forex dealer said. Against a gauge of six major global rivals, the dollar index was up by 0.23 per cent ahead of the two-day policy setting meeting of the US Federal Reserve starting Tuesday.

Forex dealers expected early hike in interest rates by Fed after improving economy, which might induce foreign funds to withdraw money from emerging markets, including India.

At the Interbank Foreign Exchange (Forex) market, the local unit resumed lower at 60.92 a dollar from last weekend's close or 60.65 and immediately touched a high of 60.90.

Later, it met with strong resistance and dipped to a low of 61.18 before settling at 61.13, showing a steep fall of 48 paise or 0.79 per cent. Previously, it had tumbled by 65 paise on 6 August, 2014 while last time, it had closed at 61.21 on 13 August, 2014. Pramit Brahmbhatt, Veracity Group CEO said. 

‘Rupee lost over 0.75 per cent taking cues from the strong dollar. The local equities closed in red even though WPI numbers were at a five-year low in August. However, increased demand for the US currency from importers dented the rupee. The trading range for the spot rupee is expected to be within 60.80 to 61.60.’

In forwards market, premium ended narrowly mixed. The benchmark six-month premium payable in February softened to 231-233 paise from last weekend’s close of 232.5-234 paise while far-forward contracts maturing in August, 2015 edged up to 484-485 paise from 483-485.5 paise.

The Reserve Bank of India fixed the reference rate for dollar at 60.9945 and for the euro at 79.0306.

The rupee fell back sharply against the pound to 99.29 from 98.34 previously and also dropped to 79.00 per euro from 78.44. It dipped to 57.00 per 100 Japanese yen from 56.60. In forwards market on Mondya, premium ended narrowly mixed.