The spot rupee weakened by two paise to close at 48.7300/7350 today as the public sector banks (PSBs) continued to buy dollars. Forward premiums went up due to the volatility in the government security market and tightness in the forward premiums.
The Indian currency opened at 48.71/72 and fell marginally during the day. Money market dealers said the market witnessed dollar inflows mainly on account of foreign investment and partly because of remittances from abroad. But the state-run banks were buying dollars from the market around 48.73 levels leading to the weakening of the currency.
