Rupee depreciates further by over seven paise vs dollar

MUMBAI: The Rupee on Thursday depreciated for the third straight session, down by another seven paise at 48.76/78 against the American currency, chiefly due to no signals from the US and EU due to the New Year holidays there, despite a smart rally in local equity markets.

According to forex dealers, there was poor attendance and thin trading due to the New Year holidays in overseas markets, which affected sentiment on the domestic front.

In lacklustre trading at the Interbank Foreign Exchange (Forex) market, the local unit resumed higher at 48.62 per dollar against yesterday's close of 48.69/70 following firm trends in equity markets.

The BSE benchmark Sensex resumed higher and remained in positive territory, ending the day up by 256 points or 2.66 per cent, supporting the rupee at the initial stage.

It moved in a range 48.46-48.85 before finishing at 48.76/78. It had closed at 48.69/70 a dollar on December 31.

Dealers said rupee movements were influenced by dollar buying and selling.

From 39 to the US dollar some time ago, the Rupee yesterday ended 2008 at 48.69/70 after plummeting more than 27 per cent and going past 50 in the third week of November, its biggest fall in over a decade.

The Reserve Bank of India, however, fixed the reference rate for the dollar at Rs 48.73 and for the euro at Rs 68.09.