The Hindu : Business : Rupee weakens further

Online edition of India's National Newspaper
Wednesday, Apr 21, 2004

Business

Business

Rupee weakens further

MUMBAI, APRIL 20. Sustained heavy corporate and importer dollar demand amidst lingering concerns of a cash dollar shortage, drove the rupee sharply lower for the second consecutive session today, despite healthy trade and foreign capital investment inflows.

In hyper volatile trading at the interbank foreign exchange market, the rupee closed at 43.9450/9550 a dollar, a nearly five paise decline from the overnight closing level of 43.90/91 after trading in broad range of 43.8900 and 44.0150. It opened at 43.90/92.

The rupee lost three paise yesterday, dragged down by dollar demand from large oil companies amidst a cash dollar shortage scare.

Disclosing a weak trend from the onset of business due to dollar demand from corporates and importers, the rupee briefly breached the 44 a dollar barrier in late morning trading, but bounced back smartly to 43.88/90 in post noon dealings after dollar supplies hit the market. Renewed dollar demand dragged it down to 43.95/96, before settling at 43.9450/9550 with sentiment remaining weak for a further fall tomorrow, dealers said. Weakness of the dollar in global markets also weighed on rupee value, they added.

PTI

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

Business