Millennium Post

Rupee ends at 4-week low at 56.16

Extending its downward trend for the fourth straight day, the rupee on Wednesday lost five paise to close at a four-week low of 56.16 against US dollar even though a late rally in Euro helped it recover from day's lows.

Sustained dollar demand from importers and fresh capital outflows weighed on the rupee, forex dealers said.

At the Interbank Foreign Exchange (Forex) market, the domestic unit opened sharply weak at 56.30 a dollar.

With dollar demand gaining ground, the rupee moved downwards in the afternoon to a low of 56.44. There was no support from Foreign Institutional Investors who sold stocks worth Rs 372 crore on Wednesday as per provisional data. However, with Euro bouncing back from its two-year lows against the dollar on reports that an ECB member in is favour of giving a banking licence to the Eurozone rescue fund, the sentiments in favour of rupee improved.
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