The rupee snapped its two-week gaining spree: Forex

Mumbai: The rupee snapped its two-week gaining spree against the American currency by slipping eight paise to 62.49 per dollar on month-end dollar demand from importers coupled with fall in crude oil prices. At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 62.55 as against weekend's level of 62.41 and dropped further to 62.69 on initial heavy dollar demand.

However, the domestic currency trimmed its initial losses on selling of dollars by banks and exporters on expectation of good foreign capital inflows in view of rise in equity market and recovered to 62.48 before concluding the week at 62.49, still showing a loss of eight paise or 0.13 per cent. It had gained 56 paise, or 0.89 per cent, in the previous two weeks.

The domestic currency moved in a range of 62.48 and 62.69 during the week. In global markets, crude oil prices fell after Russia and Iran's foreign ministers claimed a breakthrough in talks over Tehran's controversial nuclear programme that could ease sanctions on the crude producer. Meanwhile, the benchmark BSE Sensex rose by 801.50 points, or 2.92 per cent, to end the week at 28,260.14

Meanwhile, forward dollar premium finished lower on receipts by exporters. The benchmark six-month forward dollar premium payable in September dropped to 232-234 paise from 253.5-255.5 paise last weekend and far-forward contract maturing in March also moved down to 446-448 paise from 471.5-473.5 paise.

The RBI fixed the reference rate for the US dollar at 62.5908 and the euro at 67.5104 from last weekend's level of 62.6069 and 68.1476, respectively. Meanwhile, the rupee recovered against the pound sterling to end the week at 92.45 from 92.97 on last Friday and also bounced back to 67.18 per euro from 67.74 last weekend. It also ended higher at 52.12 per 100 Japanese yen from 52.32 in preceding weekend.