The Hindu : Business : Rupee drops 27 paise

Online edition of India's National Newspaper
Tuesday, Jun 22, 2004

Business

Business

Rupee drops 27 paise

MUMBAI, JUNE 21. Breaching key resistance levels, the rupee's slide against the U.S. currency gathered further momentum today, after sustained hectic dollar demand from all quarters amidst dwindling supplies, pulled it down to nine-month closing low of 45.93/95 a dollar. Declining by yet another massive 27 paise from last Friday's close of 45.6650/6750, the rupee has depreciated by over 96 paise since June 9, dragged down by persistent heavy dollar demand from large offshore oil companies in the face of receding trade and foreign fund inflows, dealers said. Nervousness gripped the interbank foreign exchange market from the onset of business today, as nervous operators scrambled to cover short dollar positions and pushed it down to Rs 45.95/97, before moderate dollar-sales by state-run banks, allowed a pull-back rally to 45.88/90. However, renewed dollar short-covering, dragged the rupee down to 45.93/95 at the close, a forex dealer said. The rupee had last ended at 45.9350/9450 per dollar on September 19, 2003.

The domestic currency plunged to five-months closing low of 45.6650/6750 on June 18, pulled down by hectic dollar demand from large offshore oil companies amidst a slowdown in foreign fund inflows.

— PTI

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