MUMBAI, Jan 30: The rupee weakened sharply on Wednesday, recording fresh intra-day and closing lows, on heavy dollar demand believed to be for commercial flows.

Traders said there were reports of dollar purchases estimated at around $115 million towards a telecommunications firm’s dividend payment on Wednesday.

That added to the pressure in a market already short of dollars.

The rupee ended at 48.50/52 per dollar, after dollar sales by state-run banks helped it recover from an all-time low of 48.6250.

It had closed Tuesday at 48.4050/4100, within striking distance of its previous closing low at 48.4125/4200 hit on January 11.

Dealers said they initially felt the rupee’s weakness was a continuation of dollar purchases by the central bank, to adjust an overvalued rupee.

The central bank may not have engineered today’s move down, but did not discourage it either, a dealer said.—Reuters