Rupee ends at 50.2O/21 per US dollar

Mumbai, Nov 19 (UNI) The Rupee today turned weak by 20 paise to settle at a new record low of 50.20/21 against the dollar on sustained heavy demand for the greenback from foreign banks and dealers.

Dealers said the Rupee recovered from a record low of 50.60 per dollar reached in early trade, helped by heavy dollar selling by the central bank.

Dealers said heavy dollar selling caused high level of volatility at the Interbank foreign exchange (forex) market even as the Indian unit moved widely in a range of 49.88 to 50.60 during the day.

They said unstoppable capital outflows and bearish local stocks were the main factors for the rupee's downfall.

It resumed weaker at 50.50/51 a dollar against its previous close of 50.02/03 a dollar. Sustained dollar demand from importers amid negligible supplies also weighed on the rupee sentiment, they added.

However, the Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 50.52 per unit, up by 78 paise, against its yesterday's rate of Rs 49.74 per dollar. Similarly, the reference rate for Euro increased by 34 paise to Rs 63.12 per unit from its last close of Rs 62.78 per unit, a RBI release said.

Meanwhile, the six-month and annualised forward dollar premiums were higher by 2.54 (2.50) per cent and 1.84 (1.81) per cent respectively.

The Rupee closed weaker at 62.04/06 (63.18/20) per unit against the Euro. It closed at 74.66/68 (75.38/40) per unit against the Pound Sterling and at 52.42/44 (51.68/70) per hundred units aginst the Japanese Yen, brokers added.

UNI AR OBB NP1904