Losing its three-day gaining momentum, the rupee on Monday dropped six paise to end at 67.11 a dollar on fag-end demand for the American currency from banks and importers on the back of higher greenback in the overseas market.
However, persistent foreign capital inflows amidst firm domestic equity restricted the rupee’s fall, a forex dealer said.
The rupee resumed higher at Rs 66.99 against Friday’s closing level of 67.05 at the Interbank Foreign exchange (forex) market and firmed up further to a high of 66.8750 on initial selling of dollars by banks and exporters.
However, it dropped afterwards to 67.15 before ending at 67.11 due to fag-end dollar demand from banks and importers on the back of higher greenback in the overseas market, showing a loss of 6 paise or 0.09 per cent.
The rupee had gained by 30 paise or 0.45 per cent in previous three trading days.
The domestic currency hovered in a range of 66.87 and 67.15 a dollar during the day.
The dollar index was up 0.32 per cent against a basket of six currencies in the late afternoon trade.
Overseas, the US dollar steadied against its major rivals in late Asian trade following last week’s large swings, as the market braced for Japanese and US central bank policy meetings that could provide investors with fresh incentive.