<p>Tumbling from six-week highs, Indian rupee today saw its biggest daily loss in over a month as it slumped 31 paise to end at 60.60 against dollar on concern US interest rates may rise sooner than investors had anticipated.<br /><br /></p>.<p>Weakness in local equities and fresh dollar demand from importers also weighed on the rupee, said forex brokers.<br /><br />The dollar rose to over five-year high against Japanese yen and about a 14-month high versus Euro. This marks a comeback after the Greenback dropped Friday following a weak jobs report that had dampened speculation of rise in US rates.<br /><br />At the Interbank Foreign Exchange (Forex) market today, the rupee commenced weak at 60.45 a dollar from previous close of 60.29. This was in line with slip in local shares.<br />The rupee then tried to recover and logged an intra-day high of 60.4050. The momentum, however, could not be sustained and it fell back to a low of 60.66, before settling at 60.60 -- a net fall of 31 paise or 0.51 per cent. This is its biggest single day loss since 65-paise drop on August 6, 2014.<br /><br />At the closing level, the rupee is just short of its one-week low of 60.68 hit on September 2.<br /><br />On Monday, rupee had gained 10 paise or 0.17 per cent to close at 60.29, a six-week high.<br /><br />The Indian equity benchmark S&P BSE Sensex today declined by 54.53 points, or 0.20 per cent. Foreign portfolio investors had injected USD 188.54 million yesterday, as per Sebi data.<br /><br />In global currency markets, the widely-tracked dollar index was up against rivals. Most Asian currencies were trading weaker compared to the US dollar.<br /><br />Changes in US interest rates can reverberate throughout the global financial system. Rising US dollar interest rates lower the attractiveness of investments in other currencies.<br /><br />Pramit Brahmbhatt, Veracity Group CEO, said: "Rupee closed weak taking cues from strong dollar as it continues to trade positively. Local equities closing on a weak note further dented the rupee movement. Also, the dollar demand from importers and corporates weighed."<br /><br />The trading range for the spot USD/INR pair is expected to be within 60.20 to 61.00, he added. <br /><br />In forwards market today, premium closed lower on fresh receipts by exporters.<br />The benchmark six-month premium payable in February dipped to 239.5-241.5 paise from last close of 242-244 paise.<br /><br />Far-forward contracts maturing in August, 2015 also declined to 493.5-495.5 paise from 498-500 paise.<br /><br />The Reserve Bank of India fixed the reference rate for dollar at 60.4277 and for the euro at 77.9276.<br /><br />The rupee fell back against the pound to 97.67 from 97.25 previously and also eased to 78.10 per euro from 78.08.<br /><br />It, however, improved further to 57.09 per 100 Japanese yen from 57.29 previously.<br /></p>
<p>Tumbling from six-week highs, Indian rupee today saw its biggest daily loss in over a month as it slumped 31 paise to end at 60.60 against dollar on concern US interest rates may rise sooner than investors had anticipated.<br /><br /></p>.<p>Weakness in local equities and fresh dollar demand from importers also weighed on the rupee, said forex brokers.<br /><br />The dollar rose to over five-year high against Japanese yen and about a 14-month high versus Euro. This marks a comeback after the Greenback dropped Friday following a weak jobs report that had dampened speculation of rise in US rates.<br /><br />At the Interbank Foreign Exchange (Forex) market today, the rupee commenced weak at 60.45 a dollar from previous close of 60.29. This was in line with slip in local shares.<br />The rupee then tried to recover and logged an intra-day high of 60.4050. The momentum, however, could not be sustained and it fell back to a low of 60.66, before settling at 60.60 -- a net fall of 31 paise or 0.51 per cent. This is its biggest single day loss since 65-paise drop on August 6, 2014.<br /><br />At the closing level, the rupee is just short of its one-week low of 60.68 hit on September 2.<br /><br />On Monday, rupee had gained 10 paise or 0.17 per cent to close at 60.29, a six-week high.<br /><br />The Indian equity benchmark S&P BSE Sensex today declined by 54.53 points, or 0.20 per cent. Foreign portfolio investors had injected USD 188.54 million yesterday, as per Sebi data.<br /><br />In global currency markets, the widely-tracked dollar index was up against rivals. Most Asian currencies were trading weaker compared to the US dollar.<br /><br />Changes in US interest rates can reverberate throughout the global financial system. Rising US dollar interest rates lower the attractiveness of investments in other currencies.<br /><br />Pramit Brahmbhatt, Veracity Group CEO, said: "Rupee closed weak taking cues from strong dollar as it continues to trade positively. Local equities closing on a weak note further dented the rupee movement. Also, the dollar demand from importers and corporates weighed."<br /><br />The trading range for the spot USD/INR pair is expected to be within 60.20 to 61.00, he added. <br /><br />In forwards market today, premium closed lower on fresh receipts by exporters.<br />The benchmark six-month premium payable in February dipped to 239.5-241.5 paise from last close of 242-244 paise.<br /><br />Far-forward contracts maturing in August, 2015 also declined to 493.5-495.5 paise from 498-500 paise.<br /><br />The Reserve Bank of India fixed the reference rate for dollar at 60.4277 and for the euro at 77.9276.<br /><br />The rupee fell back against the pound to 97.67 from 97.25 previously and also eased to 78.10 per euro from 78.08.<br /><br />It, however, improved further to 57.09 per 100 Japanese yen from 57.29 previously.<br /></p>