Persistent heavy dollar demand by oil companies as well as from foreign banks continued to pull down the rupee value which crashed by more than 18 paise against the US currency to end at a new five-month low of Rs 45.6650/6750 per dollar.
The Reserve Bank of India, which had sold dollar yesterday to check further fall in rupee, refrained from doing so on Friday, dealers said and added that exporters remained on the sideline in view of the rising dollar rates.
The dollar demand was seen throughout the day and according to dealers the heavy buying was probably on behalf of foreign institutional investors, they said.
Meanwhile, this year's lowest level touched by the Indian unit against dollar was Rs 45.69/70 per dollar recorded on January 2.
The rupee opened on a weak note at Rs 45.51/53 per dollar and after touching a low of Rs 45.6750 per dollar, closed at Rs 45.6650/6750 as against yesterday's closing level of Rs 45.48/50 per dollar.
RBI fixed the reference rate for dollar at Rs 45.6300 per dollar as against the previous level of Rs 45.5400 per dollar.
The single European unit was fixed at Rs 54.7000 per Euro as against Rs 54.7900 per Euro yesterday, while the British currency was fixed at Rs 83.4390 per pound as against yesterday's fixing of Rs 83.3883 per pound.
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