Rupee opens low at 44.29/30 against per US dollar

Mumbai, Jan 22: The Rupee today resumed low at 44.29/30 against per US dollar compared to 44.26/27 on the previous day's close on fresh selling pressure of dollar by foreing banks, dealers said.

The Indian Rupee eased on Monday as the dollar climbed towards a four-year high against the yen and as oil prices firmed, with investors also cautious of the central bank after its suspected intervention last week.

Later, the partially convertible Rupee was at 44.27/29 per dollar, slightly weaker than the previous close of 44.26/27.

There's consistent oil demand and the yen refuses to come off against the dollar, putting pressure on the rupee, but the market still remains unpredictable at the moment after the central bank intervened at both higher and lower levels last week.

Oil rose above USD 52 on Monday as cold weather conditions in the US pushed up prices, having hit a 20-month low below USD 50 last week.

Further, a fall in the Japanese yen to its weakest level against the dollar in almost four years, after the Bank of Japan kept interest rates steady last week, weighed on the Indian unit.

The Reserve Bank of India is suspected of having intervened, through state-run banks, last week to weaken the Rupee. The central bank intervenes to protect exporters' competitiveness and to curb excessive volatility.

The rupee is overvalued by about 8.5 per cent on a trade-weighted basis.

That strength may prompt the central bank to intervene further if the rupee gained, dealers added.

UNI