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Mumbai, Sept. 5

The rupee depreciated by 30 paise on Friday against the greenback due to sustained demand for the dollar. The currency opened lower at 44.58, but strengthened to touch an intra-day high of 44.28. However, it then weakened to touch an intra-day low of 44.73, a level not seen since December 2006. It recovered partially to close at 44.65, against the previous close of 44.35/36. A two-way movement was witnessed. In the first half of the day, there was large-scale dollar sellin g by corporates, which pulled the rupee up, said a dealer with a private bank. However, tracking the stock market fall, there was a huge amount of FII outflow. Along with this, dollar buying by foreign banks and oil companies pushed the rupee to its day’s low, he added. Another dealer said there was a rumoured intervention by the Reserve Bank of India at 44.65 levels. The rupee is expected to weaken further and breach the 45-mark next week, according to forex dealers. In the forward market, the 6-month premium closed higher at 2.83 per cent (2.63 per cent) and the 12-month ended at 2.56 per cent (2.46 per cent).

— Our Bureau

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