The Hindu : Rupee snaps five-session rally

Online edition of India's National Newspaper
Thursday, Jan 15, 2004

Business

Business

Rupee snaps five-session rally

MUMBAI, JAN. 14. The rupee weakened against the U.S. currency today due to a late bout of heavy dollar short-covering by banks and snapped a five-session smart rally that took it to two-month peaks even as sentiment remained positive for a fresh turnaround tomorrow.

In fairly active two-way trading at the interbank foreign exchange market, the rupee closed at 45.43/44 a dollar, a 2-1/2 paise decline from Tuesday's finish of 45.4050/4150.

After a steady opening at 45.40/42, the rupee showed an inclination to strengthen when it hit the day's peak of 45.3850/3950, but a late round of heavy dollar short-covering by banks sent it reeling down to 45.44/45, before settling at 45.43/44, dealers said. However, the outlook for the rupee remains upbeat on the back of rising foreign fund inflows into booming stock markets, they added.

Prior to today's downward correction, the rupee spurted by 29 paise in the last five consecutive trading sessions, buoyed by robust trade and capital inflows.

The Reserve Bank of India fixed the reference rate for the U.S. currency at Rs. 45.41 and for the single European unit at Rs. 57.81.

— PTI

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