RBI role suspected in rupee fall

The rupee on monday washed out initial gains and turned further weak to close at 39.8450/8550 against the US currency following suspected intervention by the central bank and some dollar buying by importers. In active trade at the Interbank Foreign Exchange market, the local unit opened strong at 39.75/77 a dollar from last Friday’s close of 39.81/82 per dollar. Later, it touched a high of 39.73 a dollar on the back of heavy capital inflows. But, intervention by the RBI at the rupee’s higher level pushed it down to 39.86 per dollar before concluding the day lower at 39.8450/8550 a dollar.