Mumbai: The Indian rupee ended weak on Wednesday following covering of some short-dollar positions, but gains in local equities and the euro ensured the fall was limited.
The partially convertible rupee ended at 44.5000/5100 per dollar after weakening to 44.5875, its lowest since 31 March. It had closed at 44.385/395 on Monday.
The local forex market was closed on Tuesday and will be shut on Thursday for a public holiday.
“There was some corporate buying below 44.50 level, but primarily the rupee fell towards end of trade due to short-covering,” said N.S.S. Mani, chief dealer at State Bank of Travancore. “Friday, rupee could move in 44.45-44.60 band and euro, along with global equity markets, will be crucial inputs.”
The euro was at $1.4514 at end of local forex trade. It had risen to as high as $1.4520 earlier in the day. The common European unit had closed at $1.4457 on Tuesday.
If the euro sustains above the $1.45 level, it could be a big positive for the rupee, dealers said.