Mumbai, Sept 24: After rising to over four-month high in early trade, the rupee today surrendered gains to close at 53.47, two paise lower, on heavy month-end dollar demand from importers and weakness in local stocks.
At the Interbank Foreign Exchange (Forex) market, the rupee commenced a paisa higher at 53.44 a dollar from last Friday's close of 53.45.
It rallied further to a 4-1/2-month high of 53.04 on dollar selling by exporters and heavy capital inflows. Previously, rupee had touched an intra-day high of 52.95 on May 10, 2012.
The rupee later, however, fell back to a low of 53.54 before concluding slightly better at 53.47, a fall of two paise. FIIs pumped in USD 300 million in stocks today as per provisional data and this helped rupee recover a bit.
Month-end dollar demand from importers, mainly oil refiners, and also some banks on hopes further rise in dollar value overseas, mainly later weighed on the rupee. The New York crude oil was trading above USD 92 a barrel today. The dollar ramped up gains during European trading hours.
“The weakness in the Euro was on account of increasing concern over Spain and weak data from Germany...If rupee sustains above 54.50 levels on closing basis in the days to come then we can say that the bottom has been made in the rupee,” said Abhishek Goenka, Founder & CEO, India Forex Advisors.
The dollar index was up by 0.36 per cent against a basket of six major currencies on reports of fresh financial trouble in Greece and Spain aided fears about the debt-ridden Euro. Meanwhile, in lacklustre trade the Indian stock market benchmark Sensex today closed lower by 79.49 points.
