Rupee ends lower by 18 paise vs dollar

On the back of weakness in dollar as a result of waning Eurozone concerns

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The rupee today recovered from near-53 levels but still ended down by 18 paise at 52.68/69 due to sustained dollar demand from banks.

At the Interbank Foreign Exchange (Forex) market, the rupee resumed lower at 52.66/67 per dollar against the last closing level of 52.50/51 per dollar.

The domestic currency fell further to the day's low of 52.90 due to sustained dollar demand and weak equity markets.

However, recovery in stock markets and a weak dollar overseas helped the rupee to recoup losses to some extent.

Persistent dollar demand from banks and importers was mainly responsible for the rupee value against dollar today, a dealer said.

"Rupee is trading at a three-and-a-half month low against the US dollar on account of India's weak economic fundamentals, widening trade deficit and possible speculative dollar buying," Abhishek Goenka, India Forex Advisors CEO said.

"Other major reasons behind weakening of the rupee is increasing oil demand and global uncertainty," he said.

In the overseas market, the dollar lost ground against most rivals in Asian trading hours, ahead of the two-day the US Federal Reserve policy meet. In London, the euro had edged higher against the dollar today after Spain, Italy and the Netherlands sold bonds, damping concern that the region’s sovereign-debt crisis is worsening.

Meanwhile, the BSE benchmark Sensex recovered by 111 points of 0.65%, which kept the rupee weak.