The partially convertible Indian rupee traded weaker and touched an intraday low of 42.97 againt the greenback on its appreciation against some major currencies, dealers said. However, rupee moved in a range band gap between 42.82 and 42.97 per dollar in a fairly active interbank foreign exchange market. The US currency inched up against the euro and other major currencies and had hit a three-month high against the yen, supported by comments from Federal Reserve Chief Ben Bernanke, who emphasised inflation concerns yesterday, dealers opined.
Dealers said that it was being expected that the Reserve Bank of India may intervene to cap any sharp downside moves on the rupee.
Reserve Bank of India (RBI) today fixed the reference rate for US Dollar at Rs 42.86 per unit, 23 paise higher than the previous day's rate of Rs 42.63 per USD.
The six-month premium was quoted higher at 2.17 (2.10) per cent and annualised premium closed at 1.78 (1.71) per cent.
Meanwhile, Rupee ended the day firm at 65.93/94 (66.03) per unit against Euro. It closed at 83.57/58 (83.51) per unit against the Pound Sterling and ended firm at 40.31/32 (40.73) per hundred units against the Japanese Yen.