Rupee loses 4 paise against dollar

Snapping three days of gains, the rupee lost 4 paise to end the day at 61.98 against the dollar on fresh dollar demand from importers, including oil firms.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced slightly lower at 61.96 a dollar from previous close of 61.94. It traded in a narrow range of 61.90 and 62.06 before concluding at 61.98, down 4 paise from its last close.

In the previous three days, the rupee had jumped 29 paise or 0.47 per cent.

"It was a mixed session for the rupee, as locally and globally there was absence of cues. Positive closing of the stock markets and weak dollar index is seen consistently supporting the rupee," said Abhishek Goenka, Founder & CEO of India Forex Advisors.

Month-end dollar demand from importers, including oil firms, however, was seen putting pressure on the rupee, he added.

Government bonds' prices dropped on the back of intense selling from banks and comapnies, while call rates firmed up following renewed demand from borrowing banks amid tight liquidity conditions in the banking system. The 8.83 per cent 10-year benchmark bond maturing in 2023 declined to Rs 99.4250 from Rs 99.69, while its yield spiked to 8.92 per cent from 8.87 per cent yesterday. The 8.28 per cent government security maturing in 2027 slipped to Rs 91.99 from Rs 92.10 previously, while yield edged up to 9.33 per cent from 9.32 per cent.