JOIN USThe rupee snapped its two-week gaining spree against the American currency by slipping 12 paise to finish at 61.19 per dollar on fag-end dollar demand from banks and importers.
The rupee resumed lower at 61.26 per dollar as against the last weekend’s level of 61.07 per dollar at the Interbank Foreign Exchange (Forex) market.
However, it recovered afterwards to 7-month high of 60.59 per dollar, a level not seen since August 12, 2013, when it touched intra-day high of 60.45, on selling of dollars by banks and exporters in view of heavy capital inflows into equity market before ending the week at 61.19 per dollar, registering a loss of 12 paise or 0.20 per cent from its last weekend’s level.
It had gained by 105 paise or 1.69 per cent in the last two weeks.
Weekly outlook from Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, “After appreciating for two weeks the rupee traded low during the week on disappointing Chinese economic data which forced investors to stay away from riskier assets, including equities, commodity and currencies.
“Asian shares slipped to a three-week low on Friday as tension over the Ukraine got more sensitive ahead of a weekend referendum forced investors to get rid of riskier assets.“Indian local equities traded weak and posted its first weekly loss after gaining for three consecutive weeks. The trading range for the Spot rupee is expected to be within 60.80 to 62.00.”
Forward dollar premiums remained weak due to sustained receipts by exporters.The benchmark six-month forward dollar premium payable in August dropped further to 235.5-237.5 paise from 250.5-252.5 paise.