The Indian rupee failed to hold on to early gains and closed steady at 42.9450/9550 against a US dollar on Monday as demand for US currency from oil importers strengthened following easing of global crude prices and on strong equity markets.
At the Interbank Foreign Exchange (forex) market, the Indian unit moved in a range of 42.88 and 42.98 during the day after resuming stronger at 42.90/92 a dollar against its last weekend''s close of 42.94/95 a dollar.The rupee had firmed up to 42.88/89 a dollar in late morning trade following buoyant equity markets.
Dealers said the local currency lost initial gains as oil companies bought dollars in the latter part of day as oil prices eased to $134 a barrel in Asian trade.Meanwhile, the benchmark Sensex bounced by 206 points, or 1.36 per cent, on Monday. Asian indices too were up by 0.18 per cent to 2.72 per cent.Oil refiners made small purchases of the greenback at the current levels to meet their monthly import payments, said a dealer with leading public sector bank.
India imports about 60 to 70 per cent of its oil requirements and import payments of oil companies increased substantially following a sharp rise in global crude prices in the last couple of months.Heavy capital outflows in the current calendar year also weighed on the rupee sentiment.
At the Interbank Foreign Exchange (forex) market, the Indian unit moved in a range of 42.88 and 42.98 during the day after resuming stronger at 42.90/92 a dollar against its last weekend''s close of 42.94/95 a dollar.The rupee had firmed up to 42.88/89 a dollar in late morning trade following buoyant equity markets.
Dealers said the local currency lost initial gains as oil companies bought dollars in the latter part of day as oil prices eased to $134 a barrel in Asian trade.Meanwhile, the benchmark Sensex bounced by 206 points, or 1.36 per cent, on Monday. Asian indices too were up by 0.18 per cent to 2.72 per cent.Oil refiners made small purchases of the greenback at the current levels to meet their monthly import payments, said a dealer with leading public sector bank.
India imports about 60 to 70 per cent of its oil requirements and import payments of oil companies increased substantially following a sharp rise in global crude prices in the last couple of months.Heavy capital outflows in the current calendar year also weighed on the rupee sentiment.
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