Rupee snaps 2-day gains vs dollar, ends marginally down

The currency had gained by 57 paise, or 1.04 per cent, in previous two days against the dollar

The rupee today snapped its last two days of gains against the American currency and ended marginally down by one paise at 53.81 per dollar on fresh dollar demand from importers amidst firm dollar in overseas market.

The rupee resumed higher at 53.69 per dollar against the previous close of 53.80 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to a high of 53.67 per dollar on selling of dollar by banks and exporters on the back of sustained capital inflows from foreign funds.

However, it declined afterward to 53.95 per dollar before finishing at 53.81 per dollar from its last close of 53.80 per dollar, showing a marginally loss of one paise on fresh dollar demand on the back of higher dollar in overses market.

It had gained by 57 paise, or 1.04 per cent, in previous two days.

In Los Angeles, the euro slipped in the early trade today ahead of a widely-expected decision by the European Central Bank to cut its key interest rate on the back of weak economic data.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said rupee traded weak for the day, taking cues from global markets where dollar traded strong against the major currencies. Indian equity markets traded strong throughout the day and closed up by over one per cent which capped the dollar gain.

Meanwhile, the Indian benchmark Sensex firmed up further by 232 points, or 1.19 per cent, to end at 19,735.77.