Home >Market >Stock-market-news >Rupee closes 20 paise weaker against dollar at 63.72

Mumbai: The rupee fell on Monday due to dollar demand from oil companies and lower foreign inflows.

The rupee closed at 63.72 per dollar, down 0.32% from its previous close of 63.52. The partially convertible currency opened at 63.47 a dollar and touched a high and a low of 63.47 and 63.74, respectively.

“The rupee had weakened below 64 per dollar earlier this month and since it has now retraced to current levels, it is attractive for oil companies to buy dollars," said a dealer with a US-based bank.

Earlier this month, the rupee had fallen to 64.28, a 20-month low as foreign institutional investors (FIIs) liquidated a part of their investments from the local debt and equity market.

“Besides demand from oil companies, the months of May to August are also lean because inflows from other sources like foreign remittances slow. That has also kept the pressure on the rupee," said the dealer quoted above. He expects the rupee to trade in the 63.25-64.25 per dollar range in the next couple of weeks.

Since January this year, the rupee has lost 1.1%.

Many Asian currencies closed weaker. The Malaysian ringgit lost 0.12%, Taiwan dollar 0.23%, Singapore dollar 0.06%, Indonesian rupiah 0.42% and the Philippine peso declined 0.06%. However, the Thai baht rose 0.46%.

The Sensex index gained 1.33%, or 363.30 points, to 27,687.30 points.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 93.619, up 0.52% from the previous close of 93.135.

The yield on the benchmark 10-year government bond ended at 7.9%, down from its previous close of 7.94%. It had opened at 7.92% and touched a high and low of 7.92% and 7.89%, respectively.

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