Rupee open weak at 44.80/81 against USD

Mumbai, Dec 14: The Rupee today opened softer by four paise and qouted low at 44.80/81 against per US dollar compared to the previous close of 44.78.79 per US dollar, dealers said.

The rupee was weaker on Thursday as the dollar held gains after solid US economic data, but traders said it could rebound if the stock market continued to recover from a recent slide.

The Nationalised banks today observed a nationwide strike which partly affected in the daily business, dealers pointed out.

India's key share index rose 1.4 per cent on Wednesday, recovering from a seven per cent drop in the previous three sessions as investors hunted for bargains. It is expected to extend gains on Thursday.

In the morning session, the rupee was at 44.80/81 against the dollar, marginally weaker than the previous close of 44.78/79.

The US dollar steadied in Asia after Wednesday's gains on retail sales data that far exceeded expectations, prompting investors to lower expectations of a Federal Reserve rate cut.

The rise in Indian shares in the previous session helped calm worries that foreign investors might start pulling out. If the stocks remain reasonably stable, the rupee was likely to regain some lost ground in the next few days.

Data showed foreign funds bought Indian equities worth USD 21 million on Tuesday, adding to USD 93 million on Monday when the market fell 2.9 per cent and taking the total this year to USD 8.4 billion, dealers added.

UNI