Re falls 16 paise to 46.12

The rupee declined by 16-17 paise to end at 46.12 against the dollar, compared to Wednesday’s closing levels of 45.96/97. After opening low at 45.92, the local rupee weakened further to an intra-day low of 46.14, before recovering to close higher. Dealers attributed this to consistent demand from large corporates and defence payments.

The weakening of the Japanese yen to 115.70 levels per dollar added to the downward movements in the rupee. There was no intervention from the RBI. “On Friday, the rupee is likely to open at around 46.10 levels per dollar, depending on the yen movements globally,” said a treasury manager. Forward premia edged up sharply, with yield on the six-month annualised premia rising to 1.24% (1.14%) and that on the one-year premia rising to 1.30% (1.22%).