The rupee declined sharply against the US currency on heavy month-end dollar demand from corporates and importers in fairly active trade at the interbank foreign exchange market even as bunched up weekend dollar supplies partly cushioned its fall. The domestic unit closed at Rs 48.4250/4350 per dollar, a steep six paise fall from last Friday’s finish of Rs 48.3700/3750 after a fresh round of hectic month-end dollar short-covering exerted severe pressure on the rupee. It opened on a steady note at Rs 48.3650/3750 per dollar. Despite positive rupee sentiment and backed by dollar supplies accumulated over the weekend, month-end pressures emerged to weaken the rupee considerably, dealers said. “Foreign, private and state-run banks were all bidding the dollar for their corporate clients throughout the day. But, for the ample dollar supplies collected over the weekend, the rupee’s decline would have been steeper,” a forex dealer commented. “I expect the rupee to remain under pressure tomorrow, as residual month-end dollar demand still remains to be absorbed”, he added.
