Month-end dollar demand drags rupee lower by 23p to close at 63.51/$

Month-end dollar demand from oil companies and persisting selling by foreign funds in stocks dragged the rupee down by 23 paise to 63.51 at close against the US currency today. At the Interbank Foreign Exchange (Forex) market, the rupee commenced lower at 63.43 from its previous close of 63.28. It soon logged a high of 63.37, but dollar demand from importers, mainly oil refiners, to meet their month-end requirements pulled down the local currency to 63.56. [caption id=“attachment_2014305” align=“alignleft” width=“380”]  AFP Image[/caption]It finally concluded at 63.51, a fall of 28 paise from its previous close. Fall in domestic stocks and sustained capital outflows weighed on the rupee. Forex dealers said the rupee closed lower taking cues from the dollar demand from oil companies and also the dollar index is trading at a multi-year high. To make the things worse local indices also traded weak, they added. The benchmark BSE Sensex today plunged by 298 points or 1.08 percent. The dollar index was down by 0.14 percent against its major global rivals. Foreign portfolios pulled out $64.02 million yesterday, as per Sebi data. In the forward market, the benchmark six-month premium payable in May ended at 192.75-194.5 paise as against 196-198 paise previously. Forward contracts maturing in November 2015 closed at to 399.5-401.5 paise 404-406 paise yesterday The Reserve Bank of India fixed the reference rate for dollar at 63.46 and for euro at 77.30. The rupee fell back against the pound to 98.72 from overnight close of 98.48 and turned negative to end at 77.44 per euro from Rs 77.37. It, too softened to 52.73 per 100 Japanese yen from 52.69. PTI