The Hindu Business Line : Rupee weakens on dollar demand

The rupee closed about 20 paise lower on strong dollar demand and a weak domestic equity market. The rupee opened at 45.50 and touched a low of 45.94 during day trade. It closed at 45.73, against the previous close of 45.44/45. There was dollar selling by the central bank at levels of 45.83, which helped the rupee recover towards close. “Oil related dollar demand and a weak stock market were reasons for the rupee’s fall today,” said the chief forex dealer with a private sector bank. There are concerns that there could be more outflows from the capital market, said the dealer. In the forward premia market, the six-month closed at 1.6 (1.66 per cent) and the 12-month at 1.34 (1.38 per cent).

— Our Bureau

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