Rupee declines three paise against USD on weak equities

Mumbai, Jan 19 (PTI) Weakness in local stocks today, amidlate dollar demand from importers, weighed on the Indian rupeeas it fell by three paise against the US currency to end theday at 45.45/46.

At the Interbank Foreign Exchange (Forex) market, thelocal currency opened stronger at Rs 45.37/38 a US dollar fromits previous close of Rs 45.42/43 and immediately touched ahigh of 45.30.

Forex dealers attributed the rise to firm equities amidsluggish dollar overseas.

Later, however, dollar demand from importers, mainly oilrefiners, and fall in local share values put pressure on therupee and it dropped to a low of 45.47 before closing at45.45/46.

The BSE benchmark index, Sensex, which was up by about 75points earlier, eventually finished the day 113.73 points or0.60 per cent down.

The US dollar lost ground in New York market yesterdayagainst most major rivals, while the euro extended gains bymore than one per cent. The dollar, gauging of major sixcurrencies, was down by 0.4 per cent in Europe today.

However, ending the nine-session long selling spree,Foreign Institutional Investors (FIIs) pumped in USD 38.74million in equities here on January 18.

Meanwhile, global crude oil was trading near USD 92 abarrel in London today. .