Rising for third straight session, the rupee today gained three paise to close at 61.40 against the dollar on strong selling pressure on US currency from banks and exporters as oil prices dropped amid weak global cues.
The domestic currency resumed lower at 61.46 as against yesterday's closing of 61.43 per dollar at the Interbank Foreign Exchange (Forex) Market and dropped further to 61.5150 per dollar on spell of initial dollar demand from importers.
However, it recovered from initial losses and ended at 61.40, showing a gain of 3 paise or 0.05 per cent.
The rupee has gained by 35 paise or 0.56 per cent in the last three trading days. It moved in a range of 61.34 per dollar and 61.5150 per dollar during the day.
US benchmark West Texas Intermediate for November delivery was down USD 1.11 to USD 87.74 a barrel in afternoon trade and Brent crude eased USD 1.12 to USD 90.99. Both contracts tumbled on Tuesday.
FPIs/FIIs pulled out a whopping Rs 1,440.99 crore from domestic stocks today, as per provisional data.
Pramit Brahmbhatt, Veracity Group CEO said, "Rupee opened weak taking cues from local equities which traded slightly negative. With expectation of interest rate hike in the US, the dollar anticipated for bullish run in coming days. Towards end rupee trimmed its early losses and close near yesterday's close at 61.40, as today".
In New York market, the US dollar fell to three-week low against its major rival in early trade, as dealers opted for safe-haven Japanese yen.
The dollar continued to dip lower yesterday against the yen Tuesday afternoon, reaching its lowest point in more than three weeks, in a move described as a correction following a strong run up.
Meanwhile, the BSE benchmark Sensex moved down by 25.18 points of 0.10 per cent to end at 26,246.79.
