Mumbai Snapping a two-day declining trend, the rupee on Thursday managed to end two paise higher at 60.93 against the greenback after late dollar demand and negative cues from stocks washed out a major part of mid-session gains.
Dollar demand from importers and some banks on hopes of further rise in dollar value tracking talk of early interest rate hike by US Fed, mainly led the rupee to veer near its previous closing level of 60.95, a four-week low. At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed better at 60.87 a dollar and immediately touched a low of 60.9450.
Later, it bounced back in mid-session to a high of 60.7050 on dollar selling by exporters, before falling back due to weak local stocks and late dollar demand. It ended at 60.93, revealing a small rise of two paise or 0.03 per cent. In previous two sessions, the rupee had tumbled 66 paise or 1.09 per cent.
An earlier than expected rate hike by US Federal Reserve might force foreign investors to shift their funds from emerging markets, including India.
The benchmark S&P BSE Sensex today declined 61.54 points, or 0.23 per cent, extending losses for the third day. FPIs/FIIs infused USD 35.64 million yesterday, as per provisional data with stock exchanges.
The dollar index was up by 0.10 per cent against a basket of six major global currencies.
Pramit Brahmbhatt, Veracity Group CEO said: "Rupee traded firm today, but as the day progressed it lost its way and gave up the gain to end near yesterday's close. Weak local stocks dragged rupee down. Concerns are abound that Fed policymakers could hike interest rates at the coming policy meeting on September 16-17."
The trading range for the spot rupee is expected to be within 60.50 to 61.50 against the dollar, he added.
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