Rupee loses 10 paise against USD in the week

Mumbai, Aug 2 (UNI) The Rupee weakened by about ten paise to 42.35/36 against US Dollar amidst volatility bouts on various factors, including strong stance taken by the Reserve Bank followed by banks revising key rates, in the week ended yesterday.

The domestic unit moved in a wide-range band between 42.32 and 42.82 per dollar during the period on the alternate bouts of selling and buying of dollar in the interbank foreign exchange market, dealers said.

The Rupee had touched a high at 42.32 after the global market sentiments improved as the oil prices came off the higher levels and demand of US currency from refineries came down by end of the week. However, it improved from a low of 42.82 per dollar, hit after the RBI announced the key rate hike to contain inflation.

The high demand of dollars was witnessed from refineries to meet their month-end commitments that pulled down the rupee but with easing global oil prices, it gained strength against the US unit in the later part of the week on decreasing dollar demands, a senior dealer with a leading private sector bank said.

''The interbank foreign exchange witnessed strong selling of dollars by the foreign and nationalised banks that pushed Rupee to a higher level in the last session of the week,'' he said.

Dealers expect the rupee's near-term prospects to be dictated by moves in global oil prices. It has dropped at a 12-weeks low near USD 123 per barrel.

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