Rupee Snaps 3-Day Winning Streak; Ends Lower at 63.72/Dollar

Rupee Snaps 3-Day Winning Streak; Ends Lower at 63.72/Dollar
Mumbai: The rupee snapped its three-day winning spree against the American currency by falling 21 paise to 63.72 on fresh dollar demand from banks and importers in view of a firm dollar in the overseas market.

The rupee resumed higher at 63.45 per dollar as against the last weekend's level of 63.51 at the Interbank Foreign Exchange (Forex) Market on initial selling of dollars by some banks and importers.

However, it failed to maintain gains on fag-end dollar demand from banks and importers on the back of firm dollar in the overseas market and fell to 63.7350 before ending at 63.72, a loss of 21 paise or 0.33 per cent.

"Oil back at $60 supports concerns that the ongoing depreciation in rupee against US dollar could gain momentum, in the event of a rate cut," said Anand James, Co Head Technical Research Desk of Geojit BNP Paribas.

The domestic currency had gained 66 paise or 1.03 per cent in the previous three days.

It hovered in a range of 63.45 and 63.7350 per dollar during the day.

Capital outflows, in small lots, also weighed on the rupee while rally in local stocks restricted its fall to some extent, a forex dealer said.

In the global market, the dollar was moderately higher against the yen in Asia trade today, helped by a bout of buying early in the session that ultimately failed to gather wider momentum.

The dollar index, a gauge of six other major global rivals, was trading higher by 0.25 per cent.

The benchmark BSE Sensex ended higher by another 363.60 points or 1.33 per cent. Besides, FPIs sold shares worth Rs 38.31 crore last Friday, as per provisional data.

Meanwhile, oil prices rose in Asia today following fresh tensions in Yemen and Iraq. Brent crude for July rose 14 cents to $66.95 a barrel in late morning trade.