Rupee dips by 32 paise to 46.49/50 against US dollar

Strong demand for the US dollar from importers to meet their month-end requirement weakened the Indian rupee by 32 paise against the American currency today.

At the Interbank Foreign Exchange market, the domestic currency opened slightly lower at 46.19/20 from its last close of 46.17/18 a dollar.

It later moved in a range of 46.17 and 46.50 before settling at 46.49/50, a fall of 32 paise, or 0.69 per cent.

Meanwhile, the Indian benchmark Sensex, which was up by nearly 90 points in early trading, fell back to settle down by 26 points, or 0.14 per cent.
    
Key Asian indices also ended mixed, while European markets displayed a feeble trend in late morning deals.
    
Dealers said a firm dollar overseas against its major currency rivals also dampened the rupee sentiment.
    
Dollar demand from importers, mainly oil refiners, to meet their month-end requirements further affected the rupee value, they said.
    
Meanwhile, global crude prices fell to near $76 a barrel in London today.
    
The rupee premium for the forward dollar fell back on fresh receiving by exporters.
    
The benchmark six-month forward dollar premium payable in November finished lower at 70-71 paise from 74-1/2-76-1/2 paise on Wednesday and far-forward maturing in May also ended down at 127-129 paise from 135-137 paise previously.
    
The Reserve Bank of India fixed the reference rate for the dollar at Rs 46.24 and for the euro at Rs 57.05.
    
In cross currency trade, the domestic currency lost against the pound and the Japanese yen and also fell against the euro.
    
The rupee tumbled further against the pound to end at Rs 69.58/60 per pound from Wednesday's close of Rs 68.98/69.00 and also moved down sharply against the yen to Rs 52.08/10 per 100 yen from Rs 51.16/18 previously.
    
It also fell against the euro to Rs 57.12/14 per euro from its last close of Rs 56.70/72.