The Indian rupee gave up last week's gains to end at a one-week closing low on Monday as local refiners worried by crude oil's continuing upward spiral stepped up their dollar purchases, dealers said.
The rupee closed at 46.4000/4200 per dollar, 0.23 percent weaker than Friday's 46.3050/3150 close. It last closed weaker on August 9 at 46.4100/4300.
"To add to the oil demand, dollar supplies continue to remain weak, with exporters probably hoping to see 46.50 before coming in to sell and inflows from foreign funds and expatriates thin," a dealer at a state-run bank said.
"Unless the RBI (Reserve Bank of India) steps in to supply dollars or oil prices and related demand start easing, we should continue to see the rupee under pressure tomorrow as well."
Rupee premiums on forward dollars ended lower as a few banks transacted buy-sell swaps eyeing the dollar's weakness overseas, but traders said lingering uncertainty about the medium-term outlook for the rupee checked further falls. The annualised premium on the benchmark six-month dollar slid 7 basis points to close at 2.68 percent.
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