Rupee down by 9 paise vs dlr at 50.78/79

The rupee today fell moderately by 9 paise to close at 50.78/79 against the US currency following weakness in local stocks and good dollar demand from importers.

Slow-down in capital inflows due to lack of clarity on General Anti-Avoidance Rule (GAAR) also weighed on the rupee, a dealer said.

However, fall in dollar overseas capped the rupee slide to some extent, the dealer added.

At the Inerbank Foreign Exchange (Forex) market, the domestic unit opened weak at 50.86/87 a dollar from previous close of 50.69/70 and immediately touched a low of 51.10 on heavy dollar demand from importers, mainly oil refiners, to meet their month-end requirements.

Some weakness in local equities amid expectations of more capital outflows also kept pressure on the rupee, a dealer said.

However, Later dollar selling by exporters at its higher levels an softening global crude oil prices helped the rupee to recover some lost ground and touched a high of 50.72 before ending still lower at 50.78/79. Yesterday, it had gained by 0.58 paise or 1.13%.

"The negative equity markets due to lack of clarity on GAAR weighed on rupee," Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said.

"The year-end dollar demand has been active and gains are also resisted by some exporter selling," he added.