Rupee touches 57-mark intra-day; down by 11 paise VS dlr

The rupee today touched one-year low level of 57 before closing at 56.84, still down by 11 paise, due to sustained dollar demand from importers and some banks amid volatile stock markets.
Dollar selling by exporters and some banks towards end of trade helped rupee recover from psychological low levels to close at 56.84, a fresh 11-month level, dealers said.
A weak dollar overseas amid capital inflows also capped the rupee fall to some extent, they said.
"Heavy dollar demand and weakness in domestic equity markets added pressure on the rupee. We continue to hold a bearish outlook on the rupee and see it breaching the all time low of 57.33 levels very soon," said Abhishek Goenka, Founder and CEO, India Forex Advisors.

At the Interbank Foreign Exchange market, the rupee resumed lower at 56.80 a dollar from previous close of 56.73 and immediately touched a low of 57.00, level not seen since June 28, 2012 when it had touched an intra-day low of 57.10.
Later, the rupee recovered some ground on dollar selling by exporters to a high of 56.7850 before concluding at 56.84, still showing a fall of 11 paise or 0.19 per cent.

Yesterday, it has plunged by 29 paise or 0.51 per cent.
The BSE benchmark Sensex today declined by 48.73 points or 0.25 per cent while FIIs infused 88.49 crore yesterday, as per provisional data with stock exchanges.

The dollar index was down by 0.22 per cent against a basket of six major currencies.
"The dollar index traded weak which restricted the rupee fall. The RBI may decide against cutting interest rates this month which will help the rupee to find its direction," Pramit Brahmbhatt of Alpari financial Services (India) said.
"Rupee has depreciated 5.2 per cent since the start of May till yesterday and has become the worst performer in Asia over this period. The trading range for the spot USD/INR pair is expected to be within 56.70 to 57.20," he added.