Rupee dips by 57 paise Vs dlr

Mumbai: Breaking its four-session gaining string, the rupee today tumbled by 57 paise to close at 49.26/27 against the US currency following distinctly weak equities amid strong dollar overseas.

Weakness in euro abroad on renewed concerns over the eurozone debt problems after Greece decided to hold a referendum on the bail out plan weighed on the rupee as dealers went for the dollar as a safe investment. Fresh dollar demand from importers and also some banks on hopes of further rise in dollar value, put pressure on the rupee while continued capital inflows did a little bit to stem the rupee fall.

At the Interbank Foreign Exchange (Forex) market, the local currency commenced lower at 48.83/84 a dollar from last close of 48.69/70 and touched the day`s high of 48.80. However, it later fell back sharply to a low of 49.3150 before concluding at 49.26/27, showing a fall of 1.17 per cent. In last straight four trading sessions, it had surged by 132 paise or 2.64 per cent.

The BSE benchmark Sensex today plunged by over 224 points or 1.27 per cent on sluggish global advices. "Looking at the global scenario one can expect Rupee to trade near 50.00 levels in coming days and the trading range for the USD/INR will be 49.00 to 49.50 tomorrow," Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said.

The dollar index was up by nearly 0.9 per cent against a basket of currencies while New York crude oil was trading below USD 91 a barrel in European market today. As per Sebi data, FIIs infused USD 703.64 million in equities in straight five trading sessions since October 24.

"The Indian rupee ended weak at 49.26 against dollar. Investors remain worried over the new EU deal, especially after the Greek prime minister raised concerns over it," Abhishek Goenka, CEO, India Forex Advisors said.

"We are expecting stronger dollar on board, on the back of risk aversion in the market, and increasing demand of safe heaven," he added. The rupee premium for the forward dollar also turned negative on fresh receivings by exporters. The benchmark six-month forward dollar premium payable in April settled down at 108/110 paise from Monday`s close of 114-1/2-116-1/2 paise and far-forward contracts maturing in October also finished weak at 160-162 paise from 169-171 paise previously.

The RBI fixed the reference rate for the US dollar at Rs 49.0775 and for the euro at Rs 67.7597. The rupee reacted downwards against the pound sterling to end at Rs 78.38/40 from yesterday`s close of Rs 77.90/92 and also dropped against the Japanese yen to settle at Rs 63.01/03 per 100 yen from Rs 62.50/52 previously. It, however, improved further to Rs 67.49/51 per euro from last close of Rs 68.16/18.