Rupee weakens as custodian banks buy dollars

Rupee weakens as custodian banks buy dollars

Mumbai: The rupee reversed direction and weakened in afternoon session on Thursday as dollar demand from custodian banks and a large company weighed while the euro too came off the day’s highs and further hurt sentiment.

At 2:25pm, the partially convertible rupee was at 45.13/14 per dollar, after rising to 44.9750, its highest since 14 December, and marginally below Wednesday’s close of 45.085/095.

The euro was trading at $1.3101 after having risen as high as $1.3153 earlier in the session.

The index of the dollar against six major currencies however, was down 0.2% at 80.569 points.

Local shares were trading down 0.15% in lacklustre trade in the holiday season.

In currency futures, the most traded near-month dollar-rupee contracts on the National Stock Exchange, MCX-SX and United Stock exchange were all at 45.1550 with the total traded volume on the three exchanges at $3.5 billion.