Mumbai, Nov 12: The Rupee today closed weaker by about eight paise against the American greenback at 39.38 per dollar as compared to previous close of 39.30/31 on selling off and the recovering dollar in overseas market.
The partially convertible Indian Rupee made a weak start in a fairly active inter bank foreign exchange (Forex) market and traded in a wide range of 39.29 and 39.42, tracking the movements in the extremely volatile Indian stock market, dealers said.
The local unit was supported around 39.32/34 per dollar during mid-day trade by the Reserve Bank of India's (RBI's) reported intervention. Later, it moved down on heavy sellings of dollars and strengthening of US currency in the overseas market, dealers added.
Dealers maintianed that the volatility in the market would continue in future sessions. Even though Indian market is witnessing correction but on global cues, rupee is expected to follow the trend of appreciation further.
The six-month forward premium closed marginally at 1.52 (1.40) per cent, while annualised premium ended at 1.17 (1.15) per cent.
Meanwhile, RBI today fixed the reference rate at Rs 39.33 per US Dollar. The reference rate was up by one paisa as compared to previous rate of Rs 39.34 per USD.
The Rupee traded firm against other major world currencies today. The Indian unit ended firm at 57.15 (57.66) against the Euro. Against Pound Sterling, the rupee closed firm at 81.45 (82.83) per unit. While, against the Japanese Yen, the Rupee ended at 35.95 (34.76) per hundred units.