Rupee loses 20 paise against USD

Mumbai, Jul 31 (UNI) The Rupee today weakened by 20 paise to close at 42.56/57 per US Dollar against the previous close of 42.36/37 on concerns over rebouncing oil prices towards higher levels.

The partially convertible Indian currency also lost its previous gains against the greenback on high demand of dollars from refineries to meet their month-end commitments, dealers said.

Rupee was range bound near the level of 42.50 for most of the day and finally ended weaker on speculative demand of dollars in the inter bank foreign exchange market, a senior dealer with a leading private sector bank said.

Global oil prices, which hit 12-week lows on Tuesday, rose more than USD 4 per barrel yesterday after U.S. gasoline stocks tumbled.

The Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 42.49 per unit, up by 2 paise against its yesterday's rate of Rs 42.47 per dollar.

The six-month and annualised forward premium was quoted at 4.68 (4.97) per cent and 3.96 (4.14) per cent, respectively.

Rupee ended the day weaker at 66.54/55 (65.95) per unit against the Euro. It closed at 84.36/37 (83.85) per unit against the Pound Sterling, while Rupee ended at 39.40/41 (39.18) per hundred units against the Japanese Yen.

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