Mumbai, July 24 (UNI) The Rupee today ended lower at Rs 42.15/16 against the US dollar with a lose of seven paise from the previous close of 42.08/09 on sustained heavy purchase of dollars by foreign banks.
The rupee weakened 0.1 percent to 42.15 per dollar, after earlier climbing as much as 0.6 percent, Yesterday's advance was the biggest since May 2008. A 30 percent rally in oil prices this year boosted India's average crude imports to USD 7.8 billion a month from USD 5.5 billion in 2007, dealers said.
The rupee rose earlier on speculation that exporters purchased the currency and sold dollars to guard against an erosion of earnings should the rupee rise further.
The rupee will accelerate gains, helped by exporters' dollar sales and the fall in oil prices,'' a spokesperson from State Bank of India said.
The Reserve Bank of India may increase its benchmark repurchase rate, or its overnight lending rate, twice by 50 basis points each time to 9.5 percent in 2008, Standard Chartered's analysts said in a report.
The Reserve Bank of India (RBI) today fixed the reference rate for US Dollar at Rs 41.96 per unit, eased 37 paise against its yesterday's rate of Rs 42.33 per dollar.
The six-month and annualised forward premium was quoted at 4.67 (4.82) per cent and 3.93 (4.11) per cent, respectively.
Rupee ended the day firm at 66.07/08( 66.24/26) per unit against the Euro. It closed at 83.72/74( 84.20/22 ) per unit against the Pound Sterling, while Rupee ended at 39.10/12 (39.24/26) per hundred units against the Japanese Yen.
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