Mumbai, Oct 18: Notwithstanding smart rise in stocks, the rupee tumbled by 54 paise to end at 3-week low of 53.41 on heavy dollar demand from oil importers amid a rise in the US currency overseas on the back of robust US economic data.
At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed weak at 52.96 a dollar from previous close of 52.87 and immediately touched a high of 52.91.
Fresh dollar demand from importers, mainly oil refiners, and also some banks put pressure on the rupee. Selling by FIIs in stocks worth Rs 69 crore further dragged the rupee as it fell to a low of 53.43.
It concluded slightly better at 53.41, showing a fall of 54 paise of 1.02 per cent over Wednesday.
This is the weakest closing for the rupee since it closed at 53.51 on September 26.
The rupee after closing at a recent high of 51.74 on October 4, appears to have lost steam and is seen hurtling towards 54-mark as FII inflows have slowed, said forex dealers.
“Rupee is not gaining strength despite the Dollar index trading below 80 levels and positive global stock markets...we also have a number of FCCB redemptions in October and November that will further add to the weakness. We see a possibility of rupee hitting 54 by month end,” said Abhishek Goenka, Founder & CEO, India Forex Advisors.
The dollar index consisting of six major rivals was up by 0.09 per cent in Europe today.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,” The rupee weakened sharply on oil importers demand who were on sidelines expecting the unit to strengthen further while delaying their payments.
The recovery from lows in equity indices also helped it cement gains and rupee closed just below the day's high.”
Meanwhile, festive spirits sparked strong buying in consumer durables banks, auto and realty stocks, helping the benchmark Sensex post a robust 181-point gain today to close at one-week high of 18,791.93.
