Fresh dollar demand from banks and importers in view of uncertainty in the currency market mainly affected the rupee value against the dollar, a forex dealer said. In London, the euro hit the two-month high level against the dollar and yen on hopes that Greece would clinch a bailout deal. This encouraged investors to unwind bearish positions.
Alpari Financial Services (India) CEO Pramit Brahmbhatt said, rupee traded weak Thursday taking cues from the dollar demand from oil importers leaving rupee to depreciate by over half a per cent. The rupee fall was restricted by positive equity market and dollar inflows, he added. The BSE benchmark Sensex was up by 123 points at 17,830.75 on sustained FII inflows as European markets firmed ahead of a decision to ease euro-zone debt crisis, especially in Greece.
Meanwhile, New York global crude oil was trading above USD 99 a barrel in European market Thursday. The rupee premium for the forward dollar ended sharply higher on sustained paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in July rose to 171-1/2-172-1/2 paise from Wednesday`s close of 166-168 paise and far-forward contracts maturing in January also finished higher at 302-304 paise from 285-287 paise.
The RBI has fixed the reference rate for the US dollar at 49.2895 and for euro at 65.5895. The rupee declined further against the pound sterling to end at 78.41/43 from yesterday`s close of Rs 78.06/08 and also drifted lower at Rs 65.67/69 per euro from Rs 65.20/22 previously. However, it fell back against the Japanese yen to Rs 64.18/20 per 100 yen from last close of 63.83/85.