The rupee traded weak mainly on the risk aversion mode of the market. The domestic currency opened at 45.56 and closed at 45.74, 25 paise lower from the previous close of 45.49.
“The equity markets have been falling and the rupee had not aligned to it for some time. So, it is now aligning to the weak equity markets,” said a forex dealer with a public sector bank. In the overseas market, the dollar was strong against currencies such as the euro, as risk aversion prevailed.
“The risk aversion will continue for some time. There are huge dollar outflows from all emerging markets,” the dealer said. In the forward premia market, the six-month closed at 6.05 per cent (6.67 per cent) and the 12-month closed at 5.74 per cent (5.93 per cent).
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