The Hindu Business Line : Rupee slips further

The rupee depreciated further against the greenback on dollar demand from oil companies. The domestic currency was volatile during the day. It opened at 43.70/72 and touched an intra-day low of 43.86 and ended the day at 43.70/72, against the previous close at 43.59/60. “Oil companies were heavily buying dollars.

Foreign banks were also making dollar purchases to take advantage of the arbitrage opportunity in the Non-Deliverable Forward market,” said a dealer at a private bank.

Forex dealers said that the rupee partially recovered its losses as public sector banks began to sell dollars, possibly on behalf of RBI. “The RBI seems to have intervened to prevent undue depreciation of the rupee in a short time,” said a dealer. In the forward premia market, the 6-month closed at 3.02 per cent (2.87 per cent) and the 12 month ended at 2.60 per cent (2.55 per cent).

— Our Bureau

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