Rupee closes at three week low against Dollar

Mumbai, Nov 15: The Rupee today closed at a three week low of 45.34/35 against the US Dollar compared to the previous close of 45.20 per US Dollar.

The Rupee declined by 15 paise to its lowest level in three weeks and closed at 45.35/. The Rupee declined due to heavy buying of dollars by corporates. There was speculation that state-run banks were buying Dollars, although mildly to cap the Rupee's gains.

Markets expect the Rupee to trade softly against the Dollar in the days to come.

Forward Premia were choppy as importers were covering their forwards in the morning trade, followed by exporters booking forwards during the afternoon trade.

During the whole day's session trade, six-month forward premia was lower at 1.82/1.84 per cent against 1.85/1.87 per cent on the previous day and one-year forward premia quoted also weaker at 1.74/1.76 per cent compared to 1.76/1.78 per cent on the same period.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 45.34 per US Dollar, down by 18 paise from it's yesterday's rate of Rs 45.16 per US Dollar, a RBI spokesperson said here.

However, the performance of the Rupee against other currencies was mixed. The domestic currency closed down against the Euro at Rs 57.96/98 (57.92/94) per unit. Against the Pound Sterling, it was at Rs 85.50/52 (85.72/74) per unit and against the Japanese Yen, it was at Rs 38.36/38 (38.38/40) per 100 units, dealers said.

UNI