New Delhi, August 17: The Indian rupee today softened by 4 paise to a fresh three-week low of 46.80/81 against the US dollar in a lacklustre trading session marked by dollar demand from importers despite weakness of the American currency overseas.
The domestic unit opened lower at 46.84/85 a dollar on the Interbank Foreign Exchange, compared to last weekend’s close of 46.76/77. It later moved in a narrow range between 46.73 and 46.89, in line with local equities, before settling at 46.80/81 at the end of the session.
Forex dealers said the rupee’s fortunes were tempered by expectations of fall in foreign capital inflows in the near- term on account of weakness in equities. Healthy foreign fund participation in the domestic market had supported the rupee in the last several days.
According to forex dealers, some dollar demand from importers, mainly oil refiners, also weighed on the rupee.
—Agencies