Rupee declines against dollar

The rupee slightly fell against the dollar at the local currency market on Monday in the wake of high demand for the greenback for import payments, dealers said on Monday.

In the interbank market, the rupee closed at 98.47 to the dollar, down by four paisas from its previous closing of 98.43. The market witnessed the high of 98.50 and the low of 98.47. The rupee also lost some of its value against the dollar as it was traded at 99.80 and 100 for buying and selling, respectively, the dealers said.

The open market was made volatile on the back of shortage of dollars in the market, they said.

“The rupee could suffer more losses against the dollar in the coming months due to external debt servicing obligations, especially debt repayments to the International Monetary Fund (IMF),” an analyst said.

As a result of such payments, the external account would see huge outflows, which dent the foreign exchange reserves position of the country and lead the rupee to further decline against the dollar, they said.Poor law and order situation is also hurting investors’ confidence on the economy, they added. (Courtesy – The News)