Mumbai: Extending losses for the third straight week, the rupee came off from seven-week low of 61.62 logged on Friday but still closed down by 34 paise to settle the week at 61.15 against the Greenback on sustained month-end dollar demand from importers and sluggish local equities.
Sustained capital outflows by foreign funds and firm dollar overseas too weighed on the rupee, a forex dealer said.
The dollar index was up and remained near four-year peak against major rivals, underpinned by safe-haven buying as US and Arab warplanes struck targets in Syria.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced the week slightly lower at 60.85 per dollar from last weekend's close of 61.81 and immediately touched a high of 60.7425 on firm local equities on the first day of the week.
However, it met with strong resistance and later continued its downslide till Thursday on continuous fall in local equities and dollar demand from importers, mainly oil refiners, to meet their month-end requirements.
It touched a low of 61.62 on Friday - a level not seen since August 8, 2014 when it had logged an intra-day low of 61.74.
The rupee later recovered in line with local stocks to a settle at 61.15, still showing a fall of 34 paise or 0.56 percent. In straight three weeks, it has plunged by 76 paise or 1.26 percent.
The benchmark S&P BSE Sensex plunged by 464.10 points, or 1.71 percent, despite fag-end buying triggered by reports that international rating agency S&P upgraded India's credit outlook while FIIs pulled out USD 326.54 million on the first four days of the week, as per Sebi data.
"The Indian rupee was influenced by state-run banks' dollar-purchases on behalf of oil importers. Local markets await the RBI's monetary policy review on September 30," said Suresh Nair, Director, Admisi Forex India Pvt Ltd.
Pramit Brahmbhatt, Veracity Group CEO said,"The week Rupee was hammered and depreciated over 0.50 percent.
Rupee extended its weakness taking cues from strong dollar boosted by the better than expected data.
"Weak local equities and month end dollar demand from oil importers forced rupee further to depreciate on weekly basis. The trading range for the Spot USD/INR pair is expected to be within 60.50 to 61.50."
In forward market, premium remained under pressure on sustained receipts by exporters.
The benchmark six-month forward dollar premium payable in February plunged to 208-210 paise from 221.5-223.5 paise last weekend and far-forward contracts maturing in August 2015 also dipped to 463-465 paise from 479.5-481.5 paise.
The RBI fixed the reference rate for the USD at 61.5720 and the euro at 78.4489 from preceding weekend's level of 60.8055 and 78.4695 respectively.
The rupee remained weak against the pound sterling at 99.69 from 99.54 last weekend while falling back to 56.04 per 100 Japanese yen from 55.89.
As far as euro is concered, it improved further to 77.85 per euro from 78.17 previous weekend.
On the domestic front, silver (.999 fineness) resumed sharply lower at Rs 39,660 per kg from last weekend's close of Rs 40,510 and moved in a range of Rs 39,580 and Rs 40,285 before concluding at Rs 40,050, showing a loss of Rs 460 per kg. Previously, it touched a low of Rs 39,200 on November 5, 2010.
Standard gold (99.5 purity) opened weak at Rs 26,365 per 10 grams from preceding weekend's close of Rs 26,500, but later recovered and improved further to a high of Rs 26,940 before settling the week at Rs 26,760, exhibiting a rise of Rs 260 per 10 grams. Previously, it had logged a low of Rs 26,210 on July 10, 2013.
Pure gold (99.9 purity) also commenced lower at Rs 26,515 from last close of Rs 26,650 and later continued its upward trend to a high of Rs 27,090 before concluding at Rs 26,910, revealing a rise or Rs 260 per 10 grams.
Previously, it had registered a low of Rs 26,345 on July 10, 2013.
