Rupee plunges to 64-level vs US dollar

Extending its decline for the second straight session, the rupee slumped to 64-level against the American currency after nearly two weeks before ending at 63.98, falling by another 41 paise on persistent dollar demand from banks and importers.

The rupee resumed lower at 63.60 per dollar as against the yesterday's closing level of 63.57 at the Interbank Foreign Exchange market and dropped further to 64.0050 per dollar after nearly two weeks before ending at 63.98, showing a loss of 41 paise or 0.64 per cent.

The rupee was traded at 64.04 per dollar during the intra-day on May 14, 2015. The rupee had ended lower by 0.05 paise or 0.08 per cent yesterday. The domestic currency moved in a range of 63.60 per dollar and 64.050 per dollar during the day.

In the global market, the euro hit a one-month low against the dollar today as fears lingered about the Greek debt situation, while the dollar hit a fresh two-month high against the yen.

Meanwhile, oil prices were mixed in subdued Asian trade today as dealers searched for fresh cues following public holidays in the United States and much of Europe, analysts said.

US benchmark West Texas Intermediate for July delivery gained 12 cents to USD 59.84 while Brent crude for July fell one cent to USD 65.51 in late-morning trade. The Indian benchmark Sensex fell by 112.47 points or 0.41 per cent today.

Pramit Brahmbhatt, Veracity Group CEO, said, "Today weak local equities and strong presence of dollar in global market hammered the rupee and forced it to depreciate over half per cent for the day. Also the month end dollar demand from oil importers further dented the Rupee movement & strained it to close at 63.98 for the day".

The trading range for the Spot USD/INR pair is expected to be within 63.60 to 64.40, he added. In the forward market, the premium dropped further on sustaned receivings from exporters.

The benchmark six-month premium payable in October moved down further to 195-197 paise from 199-201 paise while forward contracts maturing in April 2016 also dropped further to 416.5-418.5 paise from 422.5-424.5 paise previously. The Reserve Bank of India fixed the reference rate for dollar at 63.8450 and for the euro at 69.6421.

The rupee reacted downwards against the pound sterling to 98.58 from 98.36 previously and dropped against the euro to 69.87 from 69.77. The domestic currency advanced against the Japanese currency to 52.17 per 100 yen from 52.30 yesterday.