Rupee declines by 27 paise to a week's low against Dollar

Mumbai: The rupee dropped by 27 paise to close at 71.62 against the $ on Thursday, ending its two-day winning run due to month-end dollar demand from oil importers and growth concerns ahead of release of GDP data on Friday.

Fresh trade concerns after China said it was ready to take firm counter-measures against the US which passed a law supporting Hong Kong protestors also weighed on the domestic currency.

Foreign fund inflows, weak crude prices and losses in the dollar against global currencies capped the rupee losses.

At the interbank foreign exchange market, the local currency opened on a positive note at 71.33 but lost ground during the day to touch a low of 71.67. It finally settled at 71.62, lower by 27 paise against its previous close.

On Wednesday, the domestic unit had closed at 71.35 against the $. Forex traders said the domestic unit was trading in a narrow range as investors are awaiting clarity on the US-China trade deal front.

US President Donald Trump signed a law that voiced support for the pro-democracy protests in Hong Kong.

"India's rupee snapped a two-day gain amid month-end dollar demand seen from importers ahead of the release of GDP number.

Market is already pricing the 4.5 per cent growth in June-September quarter, the least since the Q1, 2013," said V K Sharma, Head PCG & Capital Markets Strategy, HDFC securities.