After breaching 81 vs USD, rupee weakens as importers purchase greenback

After strengthening to an almost two-month intraday high and breaching the psychologically significant 81 per dollar mark, the rupee witnessed an erosion of gains and ended weaker versus the greenback on Monday, as importers rushed to buy the US currency at relatively lucrative levels.

The rupee, dealers said, also reversed gains because of likely dollar purchases by the Reserve Bank of India as it sought to replenish its foreign exchange reserves, currency traders said.

The domestic currency closed at 81.39 per dollar on Monday, against 81.13 per dollar on Friday. Intraday, it had strengthened to 80.88 per dollar, breaching the