Rupee down by 11 paise against dollar

MUMBAI: Snapping three days of gains the rupee on Friday closed 11 paise down at 44.18/19 against the US currency on heavy dollar demand amid a firm American unit overseas and weak equities.

At the Interbank Foreign Exchange ( Forex) market, the domestic unit opened a tad higher at 44.06/07 a dollar from last close of 44.07/08.

It concluded at 44.18/19. The local currency gained 33 paise or 0.74 per cent in last three trading sessions.

Forex dealers said that heavy dollar buying by importers, mainly oil refiners, to meet their month-end requirements dampened the rupee sentiment.

Strong dollar overseas too put pressure on the rupee, they added.

The dollar index, consisting of six major currencies, was up by 0.22 per cent while New York crude oil was trading below USD 97 a barrel in the European market today.

Alpari Financial Services (India) CEO Pramit Brahmbhatt said, "Rupee ended weak tracking losses in the Euro and strength in the dollar index. The weak equity markets too supported the rupees weakness."

"Heavy buying was seen by the oil importers who bought dollars to meet the month end dollar demand," he added.

India Forex Advisors CEO Abhishek Goenka said, "Rupee has been highly overbought currently in spite of weakness in various forms in the Indian economy. On this background we can see the rupee at least retracing its path till 44.30 levels".

Meanwhile, in a choppy trade, the BSE Sensex fell by about 12 points to 18,197.20.