The rupee fell against the dollar and euro in the currency market on Monday in process of trading, dealers said. The rupee dropped by five paisa in terms of the dollar for buying at Rs 106.35 and it fell by six paisa for selling at Rs 106.40, they said.
In the first trading, the dollar was mired near an 8-month low against a basket of currencies on growing expectations the US Federal Reserve will have to delay scaling back its stimulus following a 16-day government shutdown.
The dollar index held steady at 79.675, not very far from a trough of 79.478 touched on Friday, its lowest level since February. "In the last two months, previous payrolls figures were revised down. The US economy is losing steam and cannot withstand tapering," said Daisuke Uno, chief strategist at Sumitomo Mitsui Bank.
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Open Bid Rs 106.35
Open Offer Rs 106.40
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Bid Rate Rs 106.30
Offer Rate Rs 106.50
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According to the currency dealers, the dollar resumed trading at its last week closing of Rs 106.25 and Rs 106.90 on buying and selling sides, respectively. The dollar observed no change in its buying rate that stayed unchanged at Rs 106.25 but it was declined to Rs 106.80 on selling side.
However, the national currency remained weak and was declined on buying side but stayed unchanged on selling side against the British pound. The pound was traded at Rs 169.00 and Rs 170.00 on buying and selling counters, compared with last Saturday closing of Rs 168.50 and Rs 170.00, respectively, the dealers added.
The dollar opened at Rs 106.60 for buying and Rs 106.70 for selling against last rate. It observed no change in the second session and closed at Rs 106.60 for buying and Rs 106.70 for selling.
Pound Sterling opened at Rs 169 for buying and Rs 169.50 for selling against same last rate. It closed at the same rate without further change by the end of evening session.