Rupee down 42 paise against dollar; hits three-week low

Rupee depreciated to three-week low as most of the Asian currencies weakened to the US currency.

The dollar extended its relentless rally against the Japanese currency on Friday to break above 101 to its highest since April 2009, after signs that Japanese investors are buying more foreign assets provided yet another reason to sell yen.  

Increased demand for the dollar from banks and importers also put pressure on the rupee but a higher opening in the domestic equity market, capped the fall, forex dealers said.

The rupee had lost nine paise to close at one-week low level of 54.25 against the dollar due to sustained demand for the US currency for oil and gold related payments.

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