Rupee opens low at 44.72/73 against USD

Mumbai, Dec 18: The rupee today opened lower at 44.72/73 per US dollar compared to yesterday's close of 44.69/70 per USD, dealers said.

The Indian rupee eased today on dollar demand from oil importing companies. However, foreign inflows into a rebounding stock market could provide support.

The market was awaiting Bank of Japan's policy decision, which is likely to provide clues whether Japanese interest rates will rise next month.

In the morning session, the rupee was around 0.06 per cent lower at 44.7275/7325 against the dollar. It has gained about 5 per cent from a three-year low of 47.04 in July on strong foreign fund inflows, which have topped Rs 800 crore this year.

The oil companies are driving down the rupee. The stock market, if rallies, will provide support to the rupee but overall the rupee is unlikely to cross 44.75.

Indian shares started 0.6 per cent higher today tracking firm Asian markets. The 30-share BSE index rose 0.94 per cent to 13,614.52 points last week, gaining for the third day in a row after a sharp sell-off.

The market expects the rupee to range-trade over the next few weeks. Upbeat emerging market sentiment may create appreciation pressure but still high valuations could limit the rupee strength, dealers added.

UNI