The Hindu : Sharp fall in rupee

Online edition of India's National Newspaper
Tuesday, Oct 28, 2003

Business

Business

Sharp fall in rupee

MUMBAI OCT. 27. The rupee declined sharply against the U.S. currency today on fresh round of heavy all round dollar demand in fairly active trading at the interbank foreign exchange market even as the trade braces up for further pressures due to the usual month-end considerations.

Closing at 45.3850/3950 a dollar, a steep 6-1/2 paise decline from last Friday's close of 45.32/33, the rupee initially showed signs of firming up at 45.31/32 following a steady opening quote at 45.32/33.

But, dollar demand throughout the day at regular intervals from banks, corporates and importers, dragged the currency slowly down towards the close, a dealer said.

Heaped up dollar supplies collected over the weekend gave the rupee early support and helped to a large extent by a lingering weak dollar against its major rivals, he added.

Despite positive sentiment, supported by bunched up weekend dollar supplies and a lingering weak dollar overseas, the rupee came under renewed pressure due to all round dollar demand, possibly month-end dollar purchases, dealers said.

The RBI fixed the reference rate for the U.S. currency at Rs. 45.34 and for the single European unit at Rs. 53.29. — PTI

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