Rupee falls by nine paise on dollar demand .

The Indian Rupee on Monday fell by nine paise to close at 45.14/15 a dollar on good demand for U.S. currency from importers amid increased capital outflows.

Despite a weak dollar overseas, the local unit that opened at 45.10/12 a dollar at the Interbank Foreign Exchange (Forex) market, touched a low of 45.2650 in line with weakness in local equities in afternoon deals.

The Indian benchmark Sensex was down by over 187 points in early afternoon trade. However, it recovered at the fag end, closing at 183 points or 0.94 per cent up from the previous session.

The rupee, in line with rise in equities and a weak dollar overseas, also recouped some ground to settle at 45.14/15, which is still lower than its last close.

The dollar index of six major currencies was down by over 0.1 per cent in Europe today.

Foreign Institutional Investors (FIIs) pulled out USD 859.90 million in last four trading sessions since November 7, which also weighed on the rupee.

Dollar buying was seen by importers on expectations of further rise in global crude oil prices. Crude oil was trading below USD 89 a barrel in London today.


Source : thehindu.com