Rupee falls 27 paise to 62.41 on month-end dollar demand

The rupee fell for the first time in five days and ended 27 paise lower at 62.41 against the dollar on Thursday on month-end demand from oil importers for the US currency, which strengthened in the overseas market.

The rupee resumed lower at 62.38 per dollar from the previous closing level of 62.14 at the interbank foreign exchange market. It firmed up to 62.26 before ending at 62.41, a loss of 27 paise or 0.43 per cent.

The rupee had climbed to a three-week high of 62.14 on Wednesday.

There was strong dollar demand from oil refineries.

Global crude oil prices fell to a six-month low on a surge in US stockpiles.

In New York, the dollar jumped to a six-month high against the Japanese yen yesterday. The US currency strengthened ahead of the Thanksgiving Day holiday as data showed unemployment claims dropped and consumer sentiment rose.

“Month-end oil-related dollar demand kept rupee under pressure, though local equities traded positively,” said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).

The 30-share benchmark Sensex rose 114.65 points, or 0.56 per cent, to 20,534.91. Overseas investors sold a net Rs 48.53 crore of shares yesterday, according to provisional stock exchange data.