Rupee depreciates by 27 paise against USD

Mumbai, Feb 10: The Rupee moved towards its lowest in nearly two weeks by depreciating about 27 paise against the US Dollar, on greater outflows following a correction in the Indian equity market during the week ended February 8. Tracking the fluctuations in the local equity market, the partially convertible Indian currency moved in a wide range band of 39.35 and 39.65 per dollar, before ending on a weak note at 39.625/635 on Friday, dealers said.

Meanwile, the country's forex reserve grew by 4.36 billion to touch USD 292.672 billion in from USD 288.316 billion, the Reserve Bank of India said in its weekly statistical supplementary released on Friday. The market conditions were highly volatile as the local bourses were bearish on prevailing global sell-off pressure, which resulted into down-slide of local unit against the greenback during the week, a senior dealer with a leading private bank said.

Further, Dealers were of the view that rupee will follow the trend in the equity market in the coming session. Last week, market witnessed volatile trading sessions, which would be extended next week as fears of US recession are still in the queue, dealers added.

UNI