Rupee extends losses vs dollar, down 4 paise to end at 66.89

The rupee fell for the second day in a row against the dollar on Friday closing down by 4 paise at 66.89 due to sustained dollar demand from banks and importers. Firm equity markets and foreign capital inflows failed to restrict the rupee’s fall against the dollar, a forex dealer said.

The rupee opened higher at 66.80 per dollar as against the yesterday’s closing level of 66.85 per dollar at the Interbank Foreign Exchange (Forex) market on initial selling of dollars by banks and exporters.

However, it failed to maintain initial gains against the dollar on fresh dollar demand from banks and importers and dropped to 66.8950 per dollar later. It finished at 66.89 per dollar, showing a loss of 4 paise or 0.06 per cent.

The domestic currency has dropped by 17 paise or 0.25 per cent in two days. The dollar index was trading down by 0.07 per cent against a basket of six currencies in the late trade.

Meanwhile, the RBI fixed the reference rate for the dollar at 66.8252 and euro at 74.4633. In cross-currency trades, the rupee firmed up further against the pound sterling to 86.66 from 86.78 yesterday while fell against the euro to 74.56 from 74.52.

The domestic currency firmed up against the Japanese yen to 65.55 per 100 yens from 65.99. In the forward market, premium for dollar moved down further on sustained receivings from exporters.

The benchmark six-month premium for January 2017 fell to 183.5-185.5 paise from 185-187 paise yesterday and for forward July 2017 contract also eased to 384-386 paise from 385-387 paise. The benchmark BSE Sensex rose further by 292.80 points or 1.05 per cent to 28,152.40.

Meanwhile, crude prices rose in Asia today, extending overnight gains after Saudi Arabia’s oil minister hinted producers could agree to limit production.