After registering an intra-day three-month high of 53.38, the Indian rupee not only washed out initial gains but closed further down by four paise at 53.81 against the Greenback following late weakness in local equities amid sustained dollar demand from importers.
However, sluggish dollar overseas and continued capital inflows restricted the rupee fall to a major extent, a forex dealer said. At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed higher at 53.61 a dollar from overnight close of 53.77 and touched a 3-month high of 53.38, level not seen since 23 October 2012 when it had logged an intra-day high of 53.34. Dealers attributed initial rise in the rupee value to firm local stocks and increased foreign funds inflow. Later, it succumbed to late weakness in equities and dollar selling by exporters to a low of 53.88 before settling at 53.81, showing a fall of four paise or 0.07 pct. Yesterday, it had eased by six paise or 0.11 pct.
The dollar index was down by 0.34 pct against a basket of six major global rivals as the Bank of Japan voted for a 2 pct inflation target and shifted to open-ended asset purchases in a bid to end stagnation. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,'The INR erased the gains of first half after the domestic equity markets edged lower after testing the January 2011 level on profit taking.’
However, sluggish dollar overseas and continued capital inflows restricted the rupee fall to a major extent, a forex dealer said. At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed higher at 53.61 a dollar from overnight close of 53.77 and touched a 3-month high of 53.38, level not seen since 23 October 2012 when it had logged an intra-day high of 53.34. Dealers attributed initial rise in the rupee value to firm local stocks and increased foreign funds inflow. Later, it succumbed to late weakness in equities and dollar selling by exporters to a low of 53.88 before settling at 53.81, showing a fall of four paise or 0.07 pct. Yesterday, it had eased by six paise or 0.11 pct.
The dollar index was down by 0.34 pct against a basket of six major global rivals as the Bank of Japan voted for a 2 pct inflation target and shifted to open-ended asset purchases in a bid to end stagnation. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,'The INR erased the gains of first half after the domestic equity markets edged lower after testing the January 2011 level on profit taking.’