Rupee ends lower by 5 paise vs dollar at Rs 66.81

The rupee today ended lower by 5 paise at 66.81 per dollar on fresh demand from banks and importers for the US currency despite firm domestic equity markets.

The rupee weakened even as the dollar fell against major global currencies, a dealer said.

The rupee opened lower at 66.85 per dollar from Tuesday's close of 66.76 per dollar at the Interbank Foreign Exchange (Forex) market.

Later, it slipped further on heavy dollar demand from importers to 66.8650 before ending at 66.81 per dollar, still showing a loss of 5 paise or 0.07 per cent.

Meanwhile, the dollar index was trading down by 0.30 per cent against a basket of six currencies in afternoon trade.

The Reserve Bank fixed the reference rate for the dollar at 66.7939 and for euro at 75.5773.

In cross-currency trades, the rupee dropped against the pound sterling to 87.86 from 86.72 on Tuesday and also moved down further against the euro to 75.72 from 75.40.

However, the domestic currency recovered against the Japanese yen to 66.63 per 100 yens from 66.81.

Overseas, the US dollar hit a seven-week low against a basket of major currencies in early Asian trade after minutes from the Federal Reserve's July meeting showed policy committee members opposed to a near-term rate hike outnumbered those who wanted one.

In the forward market, premium for dollar moved down further on sustained receivings from exporters.

The benchmark six-month premium for January 2017 fell to 179-181 paise from 182-184 paise on Tuesday and for forward July 2017 contract also moved down to 379-381 paise from 383-385 paise.

Oil prices eased slightly in Asia today amid reports OPEC kingpin Saudi Arabia would further raise output in August.

US benchmark West Texas Intermediate for September delivery was down two cents to $46.77 while North Sea Brent was down 16 cents to $49.69. Both contracts closed higher yesterday.

The benchmark BSE Sensex rose by 118.07 points or 0.42 per cent to finish at 28,123.44.