<div>The rupee ended two days of gains to fall by 30 paise to close at 66 against the dollar on Monday, 2 September, on demand from importers as the US currency strengthened.<br /><br />The rupee's decline, amid capital outflows and data showing slowing economic growth, was restricted by a rise in local equities, a forex dealer said.<br /><br />At the interbank foreign exchange market, the local currency started weak at 66.15 to a dollar from the previous close of 65.70 and then climbed to a high of 65.68.<br /><br />The rupee then turned negative and dropped to a low of 66.30 before recovering some ground to end at 66, a fall of 30 paise or 0.46 per cent. In the previous two trading sessions, it had zoomed by 310 paise or 4.51 per cent.<br /><br />"On account of US bank holiday, the volumes were quite thin and the rupee was seen trading in a very tight range," said Abhishek Goenka, CEO of India Forex Advisors. "Last week's dismal GDP numbers of India and strength in the US dollar index made the rupee open on a weaker note today."<br /><br />The benchmark S&P BSE Sensex continued its upward march for the fourth straight session and closed up by another 266.41 points or 1.43 per cent.<br /><br />Foreign institutional investors withdrew a net Rs 78.85 crore of shares last Friday, as per provisional data with the stock exchanges.<br /><br />The dollar index, consisting of six major rivals, was up 0.10 per cent ahead of data and central-bank policy this week.<br /><br />India's gross domestic product growth slipped to 4.4 per cent in the April-June quarter, from 4.8 per cent in January-March.<br /><br />The HSBC/Markit purchasing managers index for the country's manufacturing industry contracted for the first time in over four and a half years to stand at 48.5 in August, lower than 50.1 in July.<br /><br />"The trading range for the spot USD-INR pair is expected to be within 65.40 to 66.60," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).<br /><br />Forward dollar premiums improved on continued payments from banks and corporates.<br /><br />The benchmark six-month forward dollar premium payable in February firmed up to 258-265 paise from Friday's close of 247-252 paise. Far-forward contracts maturing in August hardened to 465-471 paise from 440-445 paise.<br /><br />The RBI fixed the reference rate for the dollar at 65.8608 and for the euro at 87.0575.<br /><br />The rupee fell to 102.84 against the pound from 101.86 previously and settled at 87.22 per euro from 87.<br /><br />It recovered to 66.48 per 100 Japanese yen from 66.91 previously.<br /><br />(PTI)</div>
