The Hindu Business Line : Rupee falls against dollar

The rupee depreciated against the greenback as there was sustained dollar buying by banks. The home currency opened at 39.62 and dropped to an intraday low of 39.89. It recovered some of its losses to end at 39.76/77, against the previous close at 39.66/ 67.Dealers said that banks were buying dollars for defence and oil-related payments. "FII outflows from the stock market have also led to continuous dollar buying. The market is in any case on a `shortdollar' position," said a forex dealer at a private bank. Many exporters have gone short on the dollar as they have been selling the greenback since the rupee fell to 39.50. The weakness in the Chinese yuan also contributed to the depreciation of the rupee. In forwards, the 6 month closed at 0.40 per cent (0.60) and the 12 month ended at 0.91 per cent (1.02). - Our Bureau

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