The rupee ended off a near three-month low on Wednesday as the euro pared losses against the dollar, but traders expect the local unit to weaken further on Thursday due to high demand for the greenback from importers and a volatile euro.
It closed at 45.3550 per dollar, after falling to 45.4275, its lowest since February 25, when it had touched 45.43. On Tuesday it had closed at 45.21/22.
The rupee is looking to weaken further. Importers are panicking and lack of supply from exporters or from foreign funds will keep it weak, said Vikas Chittiprolu, a senior forex dealer with Andhra Bank. He sees the rupee in a range of 45.20-45.50 per dollar on Thursday.
Meanwhile, yield on the 10-year benchmark 7.80%, 2021 bond steady at 8.37% as concerns over lined-up debt supplies on one side and lower US yields and a drop in global crude oil prices on the other offset each other.