The Hindu : Business : Rupee loses 4 paise

Online edition of India's National Newspaper
Tuesday, May 25, 2004

Business

Business

Rupee loses 4 paise

MUMBAI, MAY 24. The rupee lost fresh ground against the U.S. currency today on renewed heavy dollar demand amidst concerns of an acute cash dollar shortage in moderately active but slightly nervous trading at the interbank foreign exchange market.

Closing at 45.32/33 a dollar, the rupee dropped four paise from last Friday's close of 45.28/29 after opening on a weak note at 45.29/31 and dipping to a low of 45.38/39 on nervous dollar covering by banks on renewed fears of a cash dollar shortage in the system, dealers said.

The dollar's rise in early Asian trade also weighed on the rupee value, they added.

The dollar rose in Asia against the yen on speculation of a report that the U.S. consumer confidence would rise to the second-highest reading this year, putting the Federal Reserve closer to increasing its key interest rates.

Hectic dollar demand by banks, custodians for large public sector oil companies drove the rupee to a low of 45.38/39 in late morning deals amidst worries over rising oil prices and concerns over an acute cash dollar shortage, a forex dealer said.

PTI

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