Rupee ends at over one-week low

The rupee ended at an over one week low on Thursday as importers stepped up their dollar purchases to pay their year-end bills.

The rupee ended at 62.67, down 33 paise compared with previous close. The rupee had opened at 62.56 and during intra-day trades it touched a low of 62.77 per dollar. The rupee had ended at 62.69 per dollar on March 18.

"Due to the Middle East tensions oil companies were major dollar buyers. Besides that there was also month-end dollar demand from corporates. The dollar inflows into India got absorbed by the demand from various parties. The rupee may trade in the range of 62.50 to 63 tomorrow," said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.

West Asian tensions, specifically airstrikes launched by Saudi Arabia in Yemen, have pushed up oil prices due to which oil companies were seen buying dollars.

According to Suresh Nair, director, Admisi Forex, losses in shares amid speculation that FPI may be exiting the markets also weighed on the currency. Most of the emerging market currencies also ended weak on Thursday.

However, despite today's weakening since the start of 2015 the rupee has appreciated by 37 paise.

Meanwhile, government bond yields rose today tracking a surge in global oil prices, raising concerns about inflation. The yield on the 10-year benchmark bond ended at 7.80 per cent compared with previous close of 7.77 per cent.