Rupee drops at two week's low against USD

Mumbai, Aug 13 (UNI) The Rupee today fell to a two week's low and closed weaker by 28 paise at 42.64/65 per US Dollar from its previous close of 42.37/38 following a downtrend in the stock market.

The Indian unit slid to its lowest in two week's as the slide in the local stock market and surging US unit strengthened expectations of foreign fund outflows with heavy dollar demand from oil refiners also weighing, dealers said.

The partially convertible rupee touched the day's low of 42.77, weakest since July 29, amid volatile trading session in interbank forrex market in the late trade.

It opened weaker at 42.56/58 and traded in a wide range band between 42.56 and 42.76 per dollar following the negative sentiments in local stock market.

The Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 42.67per unit, up by 27 paise against Friday's rate of Rs 42.40 per dollar.

The six-month and annualised forward premium was quoted lower at 4.15 (4.21) per cent and 3.34 (3.39) per cent, respectively.

The Rupee ended the day weaker at 63.51/52 (63.13) per unit against the Euro. It closed at 79.99/80.00 (80.53/54) per unit against the Pound Sterling. Rupee ended at 39.18/19 (38.49/50) per hundred units against the Japanese Yen.

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