Mumbai: The Indian rupee ended almost steady at 63.52 – a mere one paisa lower – against the American unit on alternate bouts of demand and supply of dollars during the week under review. The rupee resumed higher at 63.45 per dollar — which was also to be the week’s high – as against the last weekend’s level of 63.51 at the Interbank Foreign Exchange (Forex) Market on initial selling of dollars by some banks and exporters.
However, it failed to maintain gains on fag-end dollar demand from banks and importers on the back of firm dollar in the overseas market and fell to a low of 63.8850 before concluding the week at 63.52, showing a minor fall of 1 paisa. “Oil back at USD 60 supports concerns that the ongoing depreciation in rupee against US dollar could gain momentum, in the event of a rate cut,” said Anand James, Co Head Technical Research Desk of Geojit BNP Paribas. Besides, higher dollar overseas following unexpectedly better US housing data for April, weighed on the rupee.
The minutes of Federal Reserve’s April meeting released showed that the central bank officials doubted they would be ready to raise short-term interest rates by mid-year. Slow-down in capital outflows, however, restricted the rupee fall to a major extent, a forex dealer said. After few days of selling, Foreign Portfolio Investors (FPIs) bought shares worth USD 2.81 million on the first four days of the week, as per Sebi data. Meanwhile, the BSE Sensex ended higher by 633.50 points or 2.31 per cent during the week, its third straight weekly rise.