The Hindu Business Line : Rupee falls by 20 paise

The rupee fell by 20 paise on high oil prices and the huge fall in the domestic equity index. On Monday, the rupee opened lower at 42.90/92 on expectations that the Sensex would also open lower. The rupee then touched a low of 42.95 before closing at 42.86 against the previous close of 42.66. For major part of the day the rupee was rangebound at 42.88-42.90, said a forex dealer with a private bank. “There was hardly any movement in the spot rupee. There were very fe w dollar sellers, due to the high oil price and expectations that it will rise even further,” said the dealer. The RBI was also seen supporting the rupee at 42.90 and preventing it from depreciating further. There are also expectations that there could be a rate hike by the RBI, as inflation is likely to move up higher on account of the rise in domestic fuel, he said. The dollar was rangebound against other global currencies as well. It recouped the losses made against the yen on Friday. The forward premia moved as importers bought forwards, in expectation higher oil price. The six-month premia closed at 2.58 per cent (2.26 per cent) and the 12-month at 2.11 per cent (1.9 per cent).

— Our Bureau

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