Mumbai: Extending losses for the fourth straight session, Indian rupee on Monday declined by ten paise to log over 13-month closing low of 63.67 against the Greenback following sustained dollar demand from importers.
Firm local equities, fresh capital inflows and some weakness in dollar overseas restricted the rupee fall to some extent, a forex dealer said. At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 63.66 a dollar from last Friday's close of 63.57.
Rupee was later trapped in a narrow range of 63.62 and 63.71 before concluding at 63.67, a fall of 10 paise or 0.16 per cent. This is the weakest close since 63.71 on November 12, 2013.
The Indian benchmark S&P BSE Sensex on Monday shot up by 154 points, or 0.57 per cent. FPIs had bought shares worth $65.87 million last Friday, as per Sebi data. The dollar index was down by 0.05 per cent against a basket of six major global rivals.
Pramit Brahmbhatt, Veracity Group CEO said, "Indian rupee started the last week of the year on weaker note and depreciated by ten paise for the day, due to dollar demand from oil companies which dented the Rupee movement."
"Local equities closed on a positive note which capped the rupee losses. The trading range for the spot rupee is expected to be within 63.20 to 64.00," he added.
In the forward market, premia recovered in view of fresh payment pressure from banks and corporates. The benchmark six-month premium payable in May inched up to 190.5-192.5 paise from to 189.5-191.5 paise on last Friday.
Forward contracts maturing in November 2015 also moved up to 397.5-399.5 paise from 394.5-396.5 paise previously. The Reserve Bank of India fixed the reference rate for dollar at 63.6539 and for euro at 77.6005.
The rupee recovered modestly to 98.92 against the pound from 98.93 but moved down further to 77.59 per euro from 77.48 per euro. However, it recovered to 52.63 per 100 Japanese yen from the last weekend's level of 52.85.
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