Higher demand for dollar, pushed the rupee to cross the barrier of 88 in the open market on Saturday, dealers said. The rupee lost 20 paisa against dollar for buying and selling at 87.85 and 88.05, they said. Commenting on the falling trend on the money market some experts were of the view that the national currency may continue decline on rising demand for dollars to meet the import payments.
Italy paid a record 6.5 percent to borrow money over six months on Friday and its longer-term funding costs soared far above levels that are seen as sustainable. The rise in borrowing costs came even as the European Central Bank bought bonds in the secondary market.
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Open Buying Rs 87.85
Open Selling Rs 88.05
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According to the currency dealers, the rupee could not get out of the pressure mainly on account of continued demand for dollar. The dollar was ended higher at Rs 88.00 and Rs 88.40, as its buying and selling rates against the Friday closing of Rs 87.70 and Rs 88.20, respectively.
However, on the contrary, the rupee recovered some of its earlier loss and appreciated its worth against the British pound. The pound's buying and selling rates were declined from previous closing of Rs 136.10 and Rs 136.80 to Rs 136.00 and Rs 136.40, respectively, the dealers added.
The dollar opened at Rs 87.60 (buying) and Rs 88.05 (selling) against the last rate. It did not observe further change in the second session and closed at Rs 87.60 (buying) and Rs 88.05 (selling).
Pound Sterling opened at Rs 137.80 (buying) and Rs 137.90 (selling) against the overnight value. It did not observe further change in the evening session and closed at Rs 137.80 (buying) and Rs 137.90 (selling).