Rupee declines 85 paise as dollar surges

Mumbai, Aug 16 (UNI) The Rupee sharply depreciated by 85 paise to 43.00/01 against US Dollar on strong buying by large corporates and dollar strengthened against other overseas currency on the week ended August 14.

The partially convertible Indian currency fluctuated between a wide gap of over 110 paise against the greenback, on sustained volatility during the week as dollar surged to a six-month high against a host of currencies overseas. Rupee traded at a wide range band 41.90 and 43.03 per dollar, dealers said.

''The Indian currency plunged sharply during the week after reports that government will review the external commercial borrowing norms,'' a senior dealer with a leading private sector bank said.

Heavy buying of dollars by the large corporates and banks for refineries, coupled with downward trend in local stock market dampened the market sentiments that renewed the outflow worries pushing down rupee to a weaker end, he added.

The dollar has hit a six-month high against a basket of major currencies today, as mounting concern that the global economy is headed for a sharper slowdown spurred more selling of the euro and higher-yielding currencies.

UNI PP RN VKG1410