Indian rupee ends marginally weaker

The Indian rupee ended marginally weaker on Monday, giving up early gains as the central bank stepped up dollar purchases in the currency market, dealers said.
The rupee, overvalued by nearly three percent on a trade-weighted basis according to analysts, could lose further ground if the central bank continued to intervene in the next few days, dealers said.
The local unit ended at 43.6400/6450 per dollar, off the intra-day peak of 43.5350 hit in early deals and slightly weaker than last week's close of 43.6325/6400. Banks were closed on Good Friday.
"There were not many bidders for the dollar except the banks which buy on behalf of the central bank," said a trader at a state-run bank. "The (dollar) inflows are good and the central bank absorbed them."
The rupee gained 0.25 percent last week and appreciated 1.7 percent in the preceding week as the central bank took a break from absorbing the steady inflow of foreign capital.