The Hindu Business Line : Rupee down 20 paise

The rupee weakened by about 20 paise due to higher oil prices and a weak domestic equity market. Crude oil price, which crossed $142 a barrel and the Sensex which fell by over 600 points were the reasons for the fall in the rupee, said forex dealers. The rupee opened weak at 42.84 and was rangebound between 42.78 and 42.88. It closed at 42.8,8 against the previous close of 42.67/68. “Though the rupee weakened, the volatility has reduced because the central bank is ac tively selling dollars. The RBI is not letting the rupee cross 42.90,” said the chief forex dealer with a private bank. In the global market, the dollar was weak against other currencies due to factors like high oil prices, a weak Dow index and negative economic data, said the dealer. In the forward premia, the six-month closed at 4.57 per cent (4.28 per cent) and the 12-month closed at 3.82 per cent (3.69 per cent). According to the dealer, the rupee will remain rangebound next week. “As the dollar outflows are more than inflows, the rupee will not strengthen sharply. And with the RBI selling dollars, the rupee will not weaken sharply,” he said.

— Our Bureau

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