Rupee hits fresh 1-wk low on dollar gains.

MUMBAI: Rupee gave up early gains on Tuesday and fell to a fresh one-week low as the dollar edged up against some major currencies and banks bought dollars ahead of a local market holiday.

The partially convertible rupee closed at 45.60/61 per dollar, after having risen as high as 45.40, and was little changed from 45.59/60 at close on Monday.

Earlier in the session, the rupee traded at 45.61 -- its weakest since March 15. Financial markets will remain closed on Wednesday for a local holiday. "The euro was falling towards close of trade here, there was oil demand and plus tomorrow being a holiday, banks were squaring up short dollar positions," said a senior dealer with a private bank.

"The rupee has traded 45.35-45.65 range recently, I think a break will target 45.00 or 45.95 on either side. But looking for a move higher towards 45.80-95 by month-end," he added. Oil is India's largest import and refiners are the biggest buyers of dollars in the local currency market.

Source : The Economic Times