Rupee weakens

The rupee marginally weakened on Thursday on account of import and debt payments, dealers said.The rupee lost four paisas and closed at 110.52/dollar as compared to the previous closing of 110.48 in the interbank currency market.

“The domestic currency was little down due to year-end dollar demand from importers and some debt outflows,” a dealer said. “The increased demand caused shortage of foreign exchange in the market. However, offloading proceeds by exporters improved supplies of the greenback.”

The currency pair is expected to close this year trading at 110.45/50, he added. In the open market, the rupee/dollar parity remained flat at 110.60/90 for the second consecutive day due to a sluggish foreign currency demand. The rupee is poised for more falls in 2018 due to the challenging external sector. The rupee is expected to weaken further in the coming year.