Rupee depreciates by 20 paise against USD during week

Mumbai, Dec 22: The rupee depreciated against US Dollar by about 20 paise, riding on the movements in Indian equity market, during the week.

The partially-convertible currency moved on the sentiments of Indian bourses amid choppy trading sessions throughout the week. The rupee touched below the two-week low level and remained volatile, moving in a wide range band between 39.33 and 39.66 per dollar, dealers said. However, the local unit ended at the same level at 39.54/55 per dollar by the end of the week at which it had resumed on Monday, on the back of alternate buying and selling of dollars in the Interbank foreign exchange (Forex) market, dealers asserted.

Further, dealers anticipate that the domestic currency may face resistance at upper and lower levels around 39.35 and 39.60 per USD respectively in the future sessions, as the market is expected to observe consolidation as well as the approaching Christmas and yearend holidays.

Rupee had appreciated by 12 per cent against greenback in this year. However, Union Finace Minister P Chidambaram yesterday noted that the rupee was market determined and it had appreciated around 5-6 per cent on a real effective exchange rate basis this year.

UNI