MUMBAI (Reuters) - The rupee fell to a one-week low on Wednesday, extending the previous session's drop, as month-end demand for the U.S. unit from importers and the dollar's gains against other Asian units weighed.
At 10:38 a.m., the partially convertible rupee was at 50.91/92 per dollar, off an early trough of 51.10, its lowest since March 19 and 0.4 percent weaker than its previous close of 50.73/74.
"The rupee is weaker due to the dollar demand from oil importers to meet month-end commitments and the Asian units are also weaker. The euro also has weakened against the dollar," a senior dealer with a private bank said.
"It is likely to trade in a band of 50.85 to 51.10 initially, but if import demand picks up later, it could head towards 51.35," he added.
Oil is India's biggest import, and refiners are the largest buyers of dollars in the domestic currency market, with their demand tending to peak at the end of each month when they make payments.
Most Asian currencies were weaker against the dollar.
The yen inched up against the euro and the Australian dollar, pulling away from this week's five-month low versus the euro, as falls in Tokyo shares tempered buying of higher-yielding currencies.
Dealers said a rise in the local share market could support the rupee later in the session. Indian shares were choppy after the market rallied 16 percent over the past two weeks.
The rupee, which rose 1.7 percent last week in its biggest rise since the week to Dec. 19, has gained 2.5 percent from a record low of 52.20 hit early March. The rebound has been helped by net foreign buying of $372 million of shares over the seven sessions to Monday.
Source : REUTERS INDIA