Rupee closes at a week's low at 42.65/66 against per USD

Mumbai, Jul 29 (UNI) The Rupee today closed at a week's low at 42.65/66 against the US dollar with a small loss of around ten paise from its last close of 42.55/56 due to hike in CRR and Repo rates by RBI, dealers said.

The Reserve Bank of India (RBI) today hiked Cash Reserve Ratio (CRR) by 25 basis point to 9 percent from existing 8.75 per cent, Repo rate by 50 basis point to 9 per cent from existing 8.5 per cent, keeping reverse rapo rate and bank rate unchanged at 6 per cent, which reflected the downward trend in the domestic market, a leading dealer said.

The rupee fell further in early trade this morning session by 16 paise to 42.70/71 against the dollar extending its losses to fourth day in a row, due to sustained month-end dollar demand amid weakness in equity markets.

At the forex market, the rupee resumed weak at 42.66/67 a dollar from its last close of 42.55/56 a dollar and later hit a low of 42.82 level due to lack of dollar supplies.

Forex dealers said the rupee, however, recovered to 42.70/71 a dollar immediately after touching a low as exporters sold dollars.

The Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 42.54 per unit, up by 24 paise against its yesterday's rate of Rs 42.30 per dollar.

The six-month and annualised forward premium was quoted at 5.15 (4.70) per cent and 4.22 (3.95) per cent, respectively.

Rupee ended the day firm at 66.95/97 (66.42/44) per unit against the Euro. It closed at 84.76/78 (84.03/05) per unit against the Pound Sterling, while Rupee ended flat at 39.50/52 (39.26/28) per hundred units against the Japanese Yen.

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