The Indian rupee on Tuesday depreciated by 12 paise to close at one-week low of 60.94 against the greenback on month-end dollar demand from importers and steep fall in local equities.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 60.93 a dollar from previous close of 60.82. It was trapped in a narrow range of 60.8675 and 61.0050 before concluding at 60.94, logging a fall of 12 paise or 0.20 per cent.
Tuesday’s closing level is the rupee’s weakest level in a week as it had closed at 61.05 on September 16.
Dollar demand from importers, mainly oil refiners, to meet their month-end requirements, weighed on the rupee.
“The Indian rupee was influenced by state-run banks’ dollar purchases on behalf of oil importers. Local markets await the RBI’s monetary policy review on September 30,” said Suresh Nair, Director, Admisi Forex India Pvt Ltd.
Weak factory employment numbers in China and private sector data showing slowdown in Eurozone growth this month led the Sensex and Nifty to register biggest fall in two-and-a-half months. This drop had a sentimental impact on the rupee value.
FPIs/FIIs picked up shares worth $11.37 million on Monday, as per Sebi data. The dollar index, a gauge of six major global rivals, was down by 0.30 per cent.
Pramit Brahmbhatt, Veracity Group CEO, said: “The trading range for the spot rupee is expected to be within 60.60 to 61.40.”
