Rupee opens three-week lowest at 44.27/28 per dollar

Mumbai, Feb 23 (UNI) The rupee today opened weaker at 44.27/28 against a US dollar, the lowest in the past 21 days, as compared to 44.24/25 per USD on lack of dollar demand by foreing banks, brokers said.

The domestic unit opened at its lowest level amidst fears that another fall in the stock market may trigger capital outflow. The yen hovered near a four-year low against the dollar.

Oil refiners stepped up dollar purchases to make month-end payments, which also weighed on the Indian unit.

Later, the partially convertible rupee was at 44.28/29 per USD, slipping further from yesterday's close of 44.24/25, which was its lowest close since late January.

The BSE index was down 0.2 per cent in the early trade after falling more than one per cent yesterday. Data showed that foreign funds sold a net of USD 9.1 million of shares on Wednesday, which weakened the rupee.

Sentiment for the rupee was further dampened with the yen hovering near a four-year trough against the dollar and a record low versus the euro after indications from the Bank of Japan that it would be slow in raising interest rates.

Local traders also said oil companies were actively buying dollars to meet monthly payments. Oil is India's largest import and was trading near USD 61 a barrel, brokers added.

UNI