Date:22/01/2008 URL: http://www.thehindubusinessline.com/2008/01/22/stories/2008012251860601.htm

Back Rupee weaker by 25 paise

Mumbai, Jan. 21

The rupee fell by about 25 paise against the dollar on Monday and moved close to a one-month's low, due to the huge losses in the domestic equity market. The rupee opened at 39.35/36 and closed at 39.55/56, against Friday's close of 39.30/31. During the day, it touched a low of 39.59/60. These levels were last seen on December 19, when the rupee touched 39.66, said dealers.

Dollar selling by some nationalised banks also gave rise to rumours that the Reserve Bank of India, too, was selling dollars. But it seemed unlikely, said a forex dealer with a private bank. The dollar was strong against other global currencies. "Even going by the global trends, the dollar should not have gained as much as it did against the rupee," said the dealer.

As there seems to be no immediate respite for the Sensex, the rupee may trade in a range of 39.50 and 39.65 tomorrow, he added. "Also, continued support from the RBI will also see the rupee in a weakening trend," he said. In the forwards market the six-month premium closed at 1.74 per cent (2.07 per cent) and the 12-month premium at 1.43 per cent (1.66 per cent).- Our Bureau