Rupee hits 29-month low

The rupee weakened 17 paise on Thursday to close at a fresh 29-month low of 68.22 per dollar due to month-end dollar demand from oil companies to settle their import payments. Demand from custodian banks also added to its weakness. The rupee traded steady in the 68.05-68.15 band in the morning trading session. State-owned banks, apparently at the behest of the central bank, sold dollars to keep the rupee in this range, said a forex market dealer. However, in the last one hour of trading, the currency weakened to touch an intraday low of 68.25 but recouped a tad to close at 68.22.