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Rupee weakens

The Indian currency which again came under pressure witnessing an intraday low of Rs 39.05-08 per US unit due to hectic dollar demand by corporates and importers covering, recovered to close at Rs 38.96-99. However, this was lower by about six paise over yesterday's close of Rs 38.90-95.

The rupee opened almost steady as against yesterday's closing levels of Rs 38.90-95, was pushed to a day's low of 39.05-08 following a continued heavy dollar demand by the corporates and the importers, with the State Bank of India initially buying the dollar but later, they sold heavily helping the rupee to recover the lost grounds, according to forex dealers.

Meanwhile, the forward premiums were reported holding the same positions as yesterday's with initially showing a one or two paise movement but settling at the previous day's levels.

On the other hand, the overseas market witnessed range-bound trading with the dollar still holding a bullish phase against all other major currencies. The pound sterling today opened at Rs 64.20-24 against the rupee, saw a high of Rs 64.31-35, a low of Rs 64.20-24 and finally at the fag end was quoted at Rs 64.19-23 at the forex market.

Meanwhile, the Reserve Bank of India fixed the reference rate at Rs 39.01 per dollar as against yesterday's fix of Rs 38.90, showing a difference of 9 paise.

UNI