Rupee down 22 paise on dollar demand

The rupee on Monday lost 22 paise to close at one-week low of 54.99 against the dollar due to month—end demand for the US currency from importers, ending calendar year 2012 with a total loss of 189 paise. Forex dealers said a firm dollar overseas also weighed on the rupee. The local currency commenced little higher at 54.76 from last close of 54.77 at the Interbank Foreign Exchange (Forex) market. It, however, fell back to a low of 55 on renewed dollar demand from importers, mainly oil—refiners, to meet their month—end as well as quarter—end demands before settling at 54.99, a fall of 22 paise, or 0.40 per cent. The rupee fall on Monday was capped to some extent as foreign institutional investors pumped in over USD 150 million (Rs 826.34) crore into local stock markets, according to provisional BSE data. The dollar index was up by 0.12 per cent against a basket of six major currencies. In the current calender year, the rupee has tumbled by 189 paise, or 3.56 per cent, from December 31, 2011 closing of 53.10. This is the second consecutive fall for the domestic currency on an annual basis. - PTI