Extending losses for the fourth session the rupee fell by four paise to close at 45.03/04 against the US currency despite bullish local equities on the back of month-end dollar demand.

Month-end dollar from importers, mainly oil refiners, to meet their monthly requirements put pressure on the rupee, dealers said.

Increased capital inflows and weak dollar in European markets, however, limited the rupee fall to certain level.

The Bombay Stock Exchange Sensex gained 172 points to close at 2—week high of over 18,412 points as investors bought oil stock after fuel price hikes, on hopes that the move will improve sectoral earnings, ignoring fears that it might also add to inflationary pressures.

FIIs poured in $335.03 million in last two trading sessions of the preceding week.

Alpari Financial Services (India) CEO Mr Pramit Brahmbhatt said, “Initially dollar gained against major currencies like EUR, GBP and JPY in Asian markets, but fell in Europe. It also traded strong against rupee and touched a one-month high in spite of positive local equities“.

“Expect the Rupee to trade around 45.00 levels and the trading range for the USD/INR will be 44.80 to 45.30 tomorrow,” he added.

Mr Abhishek Goenka CEO India Forex said, “We maintain a bearish view in rupee against the dollar due to negative local fundamentals like outflows, increasing external debts, recent political and financial distress etc while the end of QE2 would lead to outflow of dollars from various emerging markets like India, China, Brazil etc.”

“Moreover, we feel that the local currency should be an under-performer as compared to its Asian peers like Malaysian Ringgit, Chinese Yuan, Singapore Dollar and Korean won. Rupee should target 45.50-46 levels in couple of month’s time. This week rupee should hover around 45.00-45.30 range,” he added.

At the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 45.06/07 a dollar from previous close of 44.99/45.00.

It, later, moved in a range of 45.20 and 45.02 before concluding the day at 45.03/04.

The dollar index was down by nearly 0.2 per cent against a basket of currencies today.

In Tokyo market, the euro struggled near a record low against the Swiss franc in the early trade and fell versus the dollar, staying under pressure ahead of this week’s decision by the Greek parliament on whether to back austerity reforms demanded by international lenders.

The rupee premium for the forward dollar finished lower on fresh receivings by exporters. The benchmark six-month forward dollar premium payable in November closed at 118-1/2-120 paise from last weekend’s close of 120-122 paise.

Far-forward contracts maturing in May also ended down at 227-228-1/2 paise from 230-232 previously.

The RBI has fixed the reference rate for the dollar at Rs 45.10 and the euro at Rs 63.75.

The rupee recovered against the pound sterling to end at Rs 71.89/91 from last Friday’s close of Rs 72.12/14 and edged up to Rs 63.97/99 per euro from Rs 63.98/64.00 previously.

It also rebounded against the Japanese yen to Rs 55.80/82 per 100 yen from last close of Rs 56.13/15

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