MUMBAI, May 4: The Indian rupee ended a little weaker on Thursday as the dollar rose against the yen and other major currencies, but losses were muted as a booming stock market continued to lend support.

The Indian currency eased in morning trade on dollar buying by oil companies, defence purchases and suspected central bank intervention. India imports two-thirds of its oil.

There was dollar buying by oil companies, and state-run banks perhaps on behalf of the central bank, said a trader at a government-run bank.

The partially convertible rupee, which analysts say is overvalued by 5.5 per cent on a trade-weighted basis, closed at 44.8950/9050, down from Wednesday’s 44.86/87. The rupee had risen against the dollar in the previous three sessions and had touched a one-week high of 44.83 on Wednesday.

The dollar rose against the yen and other major currencies on Thursday, while the euro was little moved after the European Central Bank kept interest rates on hold at 2.5 per cent.

The dollar was boosted after Japan’s finance minister said the G7 did not point to a dollar decline after a meeting of wealthy nations last month.—Reuters