Rupee weak vs dollar due to month-end dollar demand

Rupee was at Rs 59.40 versus previous clsoe of Rs 59.04 against the dollar

The rupee was trading weak in afternoon trades due to month-end dollar demand from importers. At 1:15PM the rupee was trading at Rs 59.40 compared with previous close of Rs 59.04 against the dollar.

 

Last week the Reserve Bank of India (RBI) tightened the liquidity further in order to arrest the depreciating rupee. However, the impact of the moves was not very helpful in strengthening the rupee.

 

RBI will review the monetary policy tomorrow and the street is concerned that more liquidity tightening moves are there in the offing.