Money & Banking

Rupee down on strong dollar demand

| Updated on: Mar 10, 2011

The rupee weakened against the dollar as there was demand for the greenback from oil companies. A weak Sensex and a strong dollar in the overseas market also went against the rupee, said forex dealers.

“The consistent dollar bids coupled with a stronger dollar resulted in a weak rupee”, said a forex dealer with a private bank.

The domestic currency opened at 45.07 and closed at 45.19, lower from the previous close of 45.01. In the overseas market the dollar gained against currencies such as the euro. Though nothing has changed fundamentally in favour of the rupee, the euro had reached resistance levels, which is why there was buying in the dollar, the dealer said.

The forward premia were slightly lower with six-month closing at 6.63 per cent and the one year at 6.15 per cent.

Published on March 10, 2011

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