Mumbai: The Indian rupee depreciated further by 35 paise to close at one-month low of 60.28 against the greenback on sustained dollar demand from importers, despite smart recovery in local equities and sustained capital inflows.
At the Interbank Foreign Exchange market, the domestic unit commenced slightly lower at 59.95 a dollar from last weekend's close of 59.93 and immediately touched a high of 59.90.
Later, it continued to rule under pressure and fell to a low of 60.46 before recovering some ground to settle the week at 60.28, still showing a fall of 35 paise or 0.58 percent. Last week, it has dipped by 21 paise or 0.35 percent.
The benchmark S&P BSE Sensex this week spurted by 617.21 points, or 2.47 percent; while FIIs infused USD 321.49 million in the first four days of the week, as per Sebi data.
Pramit Brahmbhatt, Veracity Group CEO, said, "Rupee continued to trade on a weaker side and posted its second weekly loss in a row. On last trading day, the rupee posted its lowest in one month, as early morning Malaysian airlines jet got hit by missile on the Ukraine-Russia border which shocked the whole world and dented the confidence of investors."
"For the week Rupee depreciated by half percent and closed on a weak note. The rupee is expected to gain in coming weeks if the local equity continues to trade positively. The trading range for the Spot rupee is expected to be within 59.80 to 60.80," he added.
Forward dollar premiums remained weak on sustained receipts by exporters.
The benchmark six-month forward dollar premium payable in December declined further to 225.5-227.5 paise from previous weekend's close of 233.5-235.5 paise and far-forward contracts maturing in June 2015 also softened to 469.5-471.5 paise from 472-474 paise.
The RBI fixed the reference rate for the USD at 60.33 and the euro at 81.5848 from 60.1855 and 81.8720 previously.
The rupee continued its downslide the pound Sterling to end the week at 103.03 from 102.65 preceding weekend and also dipped to 59.49 per 100 Japanese yen from 59.20.
However, it remained stable against the euro to settle at its last weekend's closing level of 81.55.
