The Hindu : Sharp decline in rupee

Online edition of India's National Newspaper
Thursday, Sep 04, 2003

Business

Business

Sharp decline in rupee

MUMBAI SEPT. 3. The Indian rupee declined sharply against the U.S. currency on Wednesday, pulled down by renewed dollar demand from corporates and importers and partly weighed down by the dollar's overseas strength against major units.

In a fairly active trade at the interbank foreign exchange market, the rupee closed at 45.91/92 a dollar, a steep four paise fall from Tuesday's close of 45.8750/8800 a dollar after dipping to intraday lows of 45.93/94 a dollar.

It, however, opened on a firm note at 45.86/87 a dollar in anticipation of bunched up dollar supplies from Monday's Labour Day holiday in the U.S. The rupee lost two paise yesterday, driven down by dollar demand from offshore oil companies.

Despite steady dollar inflows from export proceeds and foreign institutional investments, the rupee came under renewed pressure due to fresh dollar demand from corporates and importers, dealers said. The dollar's rise against global currencies in overseas dealings also weighed on the rupee, they added.

The Reserve Bank of India fixed the reference rate for the U.S. currency at Rs. 45.88 a dollar. — PTI

Printer friendly page
Send this article to Friends by E-Mail

Business