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Our Bureau

Mumbai, March 22

The rupee fell against the greenback due to sustained dollar buying by the central bank.

The domestic currency opened at 44.45/46 and dipped to close at 44.50/51. On Tuesday, the rupee had closed at 44.43/44.

Dealers said that the RBI was buying the greenback to prevent the appreciation of the rupee. "In a scenario where the dollar is strengthening against all the other major currencies, the appreciation of the rupee against the greenback is seen as pressure on the real effective exchange rate. The rupee is believed to be overvalued by 8.6 per cent," said a dealer at a private bank.

In the forward premia market, the six-month premium closed at 2.5 per cent (2.57) and the 12-month ended at 2 per cent (2.05).

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