Rupee weakens

The rupee witnessed a little fluctuation in its value against the dollar on Wednesday, currency dealer said. In the interbank market, the rupee held almost steady at 105.48 against the greenback as compared to the previous closing of 105.47.
Though, the currency pair traded in a narrow range of 105.45/50, it continued to march downside gradually, amid growing pressure on balance of payments. i“The rupee appears to be touching a new support level of 105.50 in the coming sessions, as investors are worried about the fast depleting forex reserves,” a dealer said. “The central bank has provided much liquidity to banks to cater to the market demand. However, further slowdown in foreign inflows could affect the dollar supplies in the future.” The domestic unit remained stable in the kerb market, owing to smooth dollar supplies. The average rates for buying and selling for the currency pair was quoted at 107.20/40 in the open market.