Rupee closes lower

MUMBAI, JUNE 28. Month-end dollar demand from corporates and importers weakened the rupee slightly against the U.S. currency today, but trading was generally quiet and range-bound at the inter-bank foreign exchange market.

The Indian unit closed at Rs. 44.6600/6650 a dollar, a two paise decline from overnight closing level of 44.6400/6450 after moving in a narrow band of 44.6600 and 44.6800 throughout the day in listless dealings. The rupee opened at 44.6650/6750.

Moderate month-end dollar demand from corporates and importers pressurised the rupee but there was adequate local dollar supplies to absorb the buying interest and partly cushion the Indian currency's fall.

Moreover, banks did not want to keep very long dollar positions ahead of the weekend because of the high carryover costs, as the spot date has been shifted to next Monday due to central bank's Friday holiday for annual closure of accounts, dealers said.Meanwhile, the Reserve Bank of India fixed the reference rate at Rs. 44.67 a dollar, unchanged from Tuesday's rate.

- PTI

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Section  : Business
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