The domestic currency opened lower at 64.82 per dollar as against Friday’s closing level of 64.74 at the Interbank Foreign Exchange market on initial dollar demand from banks and importers. Later, it gained on dollar selling by exporters to Rs 64.69 before concluding at 64.75 per dollar, showing a mere loss of one paise or 0.02 per cent.
The domestic unit hovered in a range of 64.88 and 64.69 per dollar during the day. The dollar index was traded lower by 0.12 per cent against a basket of six currencies in the late afternoon trade. Overseas, the US dollar hovered near a three-week low versus a basket of major currencies in early Asian trade, hampered by doubts that the US Federal Reserve will raise interest rates by year-end.
The dollar slipped against most rivals in the late Asian trade on Monday, with China’s currency rising to its best level against the greenback since Beijing’s surprise devaluation of the yuan in August. Meanwhile, the Indian benchmark sensex fell by 175.40 points or 0.65 per cent.
In forward market on Monday, premium for dollar fell on fresh receivings from exporters. The benchmark six-month premium payable in March dropped to 196.25-198.25 paise from the last weekend’s level of 199-201 paise while forward September 2016 also dropped to 408.5- 410.5 paise from 414.5-416.5 paise previously.
The RBI fixed the reference rate for the dollar at 64.7260 and for the euro at 73.5999. The rupee fell against the pound sterling to finish at 99.44 from the last weekend’s level of 99.34 while dropped further against the euro to 73.63 from 73.56. It also dropped against the Japanese currency to settle at 53.90 per 100 yen from 53.59.