Money & Banking

Rupee weakens on dollar demand from oil companies

| Updated on: Apr 25, 2011

The rupee weakened as oil companies and gold importers bought dollars. However, a rise in the euro helped to cap the fall, said dealers.

The domestic currency opened at Rs 44.5 and closed at Rs 44.49, against the previous close of Rs 44.36. It touched a low of Rs 44.54 during the day.

Given the high oil prices, there are chances that the rupee may weaken in the near term as there would be continued dollar demand from oil companies, said a dealer with a private bank. But if there are dollar inflows from foreign investors into the equity markets, that could help the rupee, he added.

In the overseas market the dollar was weak against currencies such as the euro. In the forward premia market the one-year closed at 7.19 per cent, against 7.17 per cent on Thursday.

Published on April 25, 2011

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