Dealers said the rupee is experiencing a slight depreciation as the usual year-end importer demand took the rupee to Rs. 114.37/45 against the dollar from 114.25 last week.

"We are now experiencing the usual pick up of year-end import demand and the rupee peaked at 114.60 on Monday morning before the Central Bank intervened through state-names to bring it down to about 114.50," a dealer said.

Yesterday, the rupee began the day trading at a wider berth, 114.30/50 closing in at 114.37/45 at the time of writing last afternoon.

"The trend is for the rupee to appreciate, however, we are experiencing some movement the other direction due a seasonal pick up of import demand," a dealer said.

"It will be Christmas soon and import bills would continue to come in light of the festive season, it is not permanent and it is not politically motivated," another dealer said.

Last week the rupee appreciated to Rs. 114.25 against the dollar, after it was pegged at 114.80 for several months and dealers anticipate the Central Bank would allow the rupee to appreciate to 113 by the year end. The exchange rate was 113.20 at the beginning of this year.