Rupee down by 13 paise, ends at 66.85

Oil prices also fell for a third day in Asia trade today

The rupee on Thursday lost 13 paise to close at 66.85 against the dollar, on fresh demand for the US currency from banks and exporters.

The dollar turned expensive against a basket of global currencies which hit the rupee sentiment, a dealer said.

The Indian currency opened lower at 66.81 to a dollar, against the previous closing level of 66.72 per dollar at the inter-bank foreign exchange market.

The domestic unit hovered in a range of 66.91 and 66.81 to a dollar during the day before finishing at 66.85, showing a loss of 13 paise or  0.19 per cent. The rupee had gained by 12 paise or 0.18 per cent on Wednesday.

The Dollar Index was trading up 0.22 per cent against a basket of six currencies in late afternoon trade.

Meanwhile, the Reserve Bank of India (RBI) fixed the reference rate for the dollar at 66.8571 and euro at 74.6526.

In cross-currency trades, the rupee recovered against the pound sterling to 86.78 from 87.22 on Wednesday and also recouped against the euro to 74.52 from 74.61.

However, the domestic currency declined against the Japanese yen to 65.99 per 100 yens from 65.94 on Wednesday.

Oil prices fell for a third day in Asia trade on Thursday, after data showing high US crude oil stockpiles and increased the Saudi production.

Globally, the dollar rose slightly on Thursday, as the market adjusted to a view that the US Federal Reserve could leave interest rates unchanged for the rest of the year.

In the forward market, premium for dollar fell on fresh receivings from exporters.

The benchmark six-month premium for January 2017 fell to 185-187 paise from 191-192 paise on Wednesday and for forward July 2017 contract also dropped to 385-387 paise from 390-392 paise.

Meanwhile, the benchmark BSE Sensex recovered by 84.72 points or 0.31 per cent to close at 27,859.60.

As per provisional exchange data, foreign investors bought shares worth Rs 608.35 crore on net basis on Thursday.