The Hindu Business Line : Rupee weakens on dollar buying

The rupee weakened by 11 paise against the greenback on the back of dollar buying by both foreign and nationalised banks. The home currency opened at 39.64/66 and saw an intra-day high of 39.63 before ending the day at 39.78/79, down from the previous close of 39.67/68. “Banks were seen buying dollars to meet dollar demand from oil imports,” said a dealer at a private bank.

Dealers said that the rupee would weaken further with the increase in dollar demand and scarcity of supply. “The rupee will weaken and this will prompt exporters to sell which might push the rupee up thereby appreciating the rupee,” said the dealer. In forwards, the six-month premia closed at 0.47 per cent (0.83 per cent) and the 12-month closed at 0.92 per cent (1.13 per cent).

— Our Bureau

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