Rupee weakens on heavy dollar demand from importers, oil marketing firms

Lower US CPI a relief, but rupee still seen testing 80/$1 on elevated CAD

The rupee surrendered the hefty gains it notched up in early trade on Thursday to close weaker against the US dollar as a spate of dollar purchases from oil-marketing companies and importers dragged down the domestic currency, dealers said.

The rupee settled at 79.64 per US dollar as against 79.52 to a dollar on Wednesday. So far in the current calendar year, the local currency has weakened 6.7 per cent against the greenback.

The rupee started the day on a strong footing, opening sharply stronger at 79.24 per dollar and then going on to touch an intra-day high of 79.21