Rupee falls

The rupee continued to weaken against the dollar on Thursday due to a continued increase in dollar demand from importers, currency dealers said.

In the interbank market, the rupee lost 26 paisas during the day. The rupee closed at 115.40/dollar as compared to the previous closing of 115.14.

“The currency extended earlier falls during the trade because of surging demand,” a dealer said.

Many traders expect the rupee’s decline to continue in the wake of falling balance of payments position.

“The exchange rate is likely to settle at 115/115.50 at least by the end of this month. However, the currency could see further depreciation in the months to come,” another dealer said. The rupee was quoted flat at 114/115 against the dollar in the open market as compared to the previous trading session.