The Hindu Business Line : Rupee tad lower

The rupee slipped slightly against the greenback as banks continued to go long on dollars. However, the currency trimmed some of its losses during the day as exporters and foreign banks sold dollars. The domestic currency opened at 41.99 and touched an intra-day low of 42.20. It then rose to 42.02/03 but finally ended the day at 42.10/12, against the previous close at 42.04.

Forex dealers said that foreign banks were seen selling dollars as the rupee rates in the non-deliv erable forward market firmed up, which caused the rupee to partially recover its losses. The one-month delivery rupee in the NDF market ended the day at 42.19/29.

“As the price of global crude eased to $123 per barrel, there was less demand for dollars from importers,” said a dealer at a private bank. The rupee, however, closed weaker as the bearish sentiment in the market prompted banks to buy dollars. In the forward market, the 6-month premium closed higher at 1.66 per cent (1.59) and the 12 month ended at 1.36 per cent (1.32), as importers were booking contracts.

— Our Bureau

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