The Hindu : Business : Rupee loses another 3 paise

Online edition of India's National Newspaper
Thursday, May 27, 2004

Business

Business

Rupee loses another 3 paise

MUMBAI, MAY 26. The rupee lost another three paise against the U.S. currency today on late bout of heavy dollar demand from corporates and importers in moderately active trading at the interbank foreign exchange market.

After a relatively positive start at 45.34/36 a dollar, the rupee lost ground on a late round of dollar short-covering and closed at 45.39/40, sharply lower from the overnight finish of 45.36/37, dealers said.

The rupee declined by eight paise in the last two sessions, dragged down by heavy dollar demand from oil companies amidst an acute cash dollar shortage in the system. Large foreign and state-run banks, custodians for huge offshore oil companies, actively bid the dollar at the fag end of the day and exerted renewed pressure on the rupee, a forex dealer said. Dollar inflows, including trade remittances and foreign investments remained weak, which took a further toll of rupee value, he added. The Reserve Bank of India fixed the reference rate for the U.S. currency at Rs. 45.34 and for the single European unit at Rs. 54.89

PTI

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