The Hindu Business Line : Rupee continues to fall

The rupee continued to weaken and fell by almost 10 paise against the greenback on Tuesday as demand for the dollar outstripped supply. According to dealers, most of the outflow was due to Reliance Power IPO. The rupee opened at 39.42/44 and closed at 39.56/57, against the previous close of 39.45/46. There was also dollar-buying by importers. The supply of dollars dried up in the last one to one-and-a-half hour of trade, said a forex dealer with a private bank. “The outflow is likely to continue and the rupee may touch 39.72,” he said. In fact, some dealers remarked that perhaps now it is time for the Reserve Bank of India to release some dollars it had sucked out of the system. In the forward premia market, the six-month premium closed at 1.33 per cent (1.63 per cent) and the 12-month premia at 1.36 per cent (1.52 per cent).

— Our Bureau

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