Rupee ends weaker at 47.08 vs dollar

Moving in tandem with local stocks, the Indian rupee today gave up its early gains and ended six paise weaker at 47.08 against the dollar, after it (dollar) stabilised against a basket of currencies in Asian markets.

Initially, the rupee hit a seven-month high of 46.76 against the dollar as the US currency turned weak in global markets amid some selling by banks.

The Interbank Foreign Exchange (forex) market continued to witness active trade, largely influenced by a high level of volatility in equity markets.

The rupee fluctuated between 46.75 and 47.10 during the day after resuming stronger at 46.95 a dollar over its previous close of 47.02 a dollar.

Forex dealers said negative FII activity in equity also weighed on rupee sentiment.

Foreign institutional investors were believed to be heavy sellers in equity markets for two days.

Rupee sentiment, however, was strong on continued expectations of increased capital inflows during the year prompted by speedy economic reforms by the new government.

The Indian benchmark Sensex today ended fractionally in the red after breaching the 15,000 psychological level for the first time in nine months.