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Our Bureau

Mumbai, July 19

The rupee touched a three-year low on account of strong demand for dollar from several domestic petroleum companies. The domestic currency opened at 46.75 and touched an intra-day low of 47.04. It finally closed at 46.99/47. On Tuesday, the rupee closed at 46.70/71. Dealers said that there was demand for dollars from oil and petroleum companies. The rupee touched an intra-day low of 47.04, following which Mr P. Chidambaram, Finance Minister, made a statement to pacify the market, said a dealer at a private bank. The rupee stabilised to 46.92 levels but again there was a strong demand for dollars, driving the rupee down. "There was hardly any intervention by RBI," he said. Global currencies, such as yen weakened against the US currency. Dollar may strengthen against other currencies over speculations of a possible interest rate hike in the US in August, he said. The market would closely watch FED Governor's expected speech in the evening, which would touch upon interest rates, he added. In the forward premia market, the 12-month closed at 1.18 per cent (1.19 per cent) and the 6-month ended at 1.03 per cent (1.07 per cent).

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Rupee is stable in terms of real effective exchange rate: Chidambaram

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