Rupee also declines

MUMBAI, July 23: After staying rock steady over a fortnight, the Indian rupee ended weaker against the dollar on Thursday on month-end local dollar demand and regional pressure after several currencies weakened on news of a possible rating downgrade of Japan, dealers said.

The rupee closed at 42.49/51 per dollar against the previous close of 42.43/45. It touched an intra-day low of 42.52 per dollar but pared the morning8217;s losses on profit-taking by holders of long dollar positions.

Dealers said that the buying by corporates was on account of month-end demand and is likely to spill over to Friday. Dealers said the rupee hovered around 42.50 per dollar today and a lower level could not be ruled out on Friday, especially since woes in the regional countries were mounting. The forward rupee opened weaker by 3 paise but strengthened towards the close by 2 paise. The six-month annualised premia closed at 7.6 per cent.