Rupee eases on weak stocks

MUMBAI: The Indian rupee edged lower on Thursday but managed to stay above 46 per dollar despite being buffeted by a plunging local stock market and heavy dollar demand from importers.

The rupee's losses were checked by some intervention by the central bank. State-owned banks were selling dollars at various levels on behalf of the central bank, dealers said.

The partially convertible rupee; ended marginally lower at 45.9799, from the previous close of 45.9697. It hit the day's low of 46.13 on all-round dollar demand as share prices fell.

Dealers feared a further fall in the rupee, which hit at hree-year low of 46.57 last week.

"This led to demand for dollars from all sides. However,sentiment calmed after custodial banks sold dollars," a dealer with a private bank said.

The dollar's gains against the yen aided the bearish sentiment. The dollar rose to a one-month high of 114.03 on expecatations the US Federal Reserve will raise interest rates this month.    A lower-than-expected rate increase of 25 basis points by European Central Bank (ECB) led the euro to hit 1.27 per dollar, its lowest level since May 26.