MUMBAI: The rupee weakened further by five paise to 48.72/73 against the dollar on Friday due to importers’ demand for the U.S. currency, which was also strong overseas.
In an otherwise lacklustre activity at the interbank foreign exchange market, the domestic currency moved in a narrow range of 48.60 and 48.75 after resuming higher at 48.60/71 against its last close of 48.66/68.
Forex dealers said despite firm equity market, the rupee tended to move lower due to a stronger dollar against the euro as well as some dollar demand from importers.
The dollar was firmer in early trade on the London Exchange ahead of announcements of U.S. corporate earnings. The rupee’s losses were mitigated by a strong rally in domestic stocks on the back of positive FII activity. Oil refiners were believed to have purchased dollars as global oil prices slipped below $62 a barrel.
Meanwhile, the Reserve Bank of India (RBI) fixed the reference rate for the dollar at Rs. 48.69 and for the euro at Rs. 68.69.
The rupee premiums on the forward dollar ended higher on fresh paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in December ended at 48-50 paise, up from 46-48 pasie on Thursday.
Source : The Hindu