Rupee snaps three-day rise

Snapping a three-day winning spree against the dollar, the rupee declined by three paise, or 0.05 per cent, to close at 66.53 on dollar demand from importers.

The rupee resumed at 66.46 against the last weekend's 66.50 at the Interbank Foreign Exchange Market and firmed up to 66.41 on initial selling of dollars by exporters and banks, on the back of persistent foreign capital inflows amidst a firm equity market.

It dropped afterwards to 66.58 on renewed dollar demand from importers on the back of recovery of dollar in the overseas market.

It had gained by 88 paise or 1.31 per cent in the previous three days. Reported dollar purchases by public sector banks led the domestic currency to pare most of its intra-day gains. But, positive momentum in local indices contained the downside, dealers said. Foreign funds continued their buying spree as foreign portfolio investors/ foreign institutional Investors bought shares worth Rs 1,712.62 crore on Friday, according to provisional figures issued by stock exchanges.

The dollar index was up 0.08 per cent against a basket of six currencies in late afternoon trade. It was edging higher in the global market in the afternoon, following last week's loss of about one per cent against rivals. The greenback was punished after the US Federal Reserve signaled a slower pace of interest rate increase this year.