Rupee At 39.58 Against US Dollar

The rupee lost initial gains and ended hardly changed at Rs 39.58/59 a dollar as Asian equity markets turned weak in the course of good dollar demand from banks as well as oil refiners. In active trade at the Interbank Foreign Exchange (forex) market, the local currency fluctuated in a range of 39.45 and 39.65 during the day after resuming firm at 39.51/53 a dollar.

The sentiment was adversely affected as Asian markets fell back from early highs and closed in negative terrain.Month-end dollar demand from banks as well as oil corporates also weighed on the rupee sentiment, forex dealers said adding state-owned banks bought dollars at 39.45 level as the Indian unit came under pressure from weakness in equity markets. At the start, the rupee appreciated against dollar on expectations of more capital inflows, prompted by reports that several foreign funds are waiting the market regulator''s clearance. The benchmark Sensex moved in a wide range of 515 points but closed virtually steady. The rupee is expected to remain under pressure in the week in view of the month-end dollar demand.