The Hindu : Business : Rupee breaches 46/$

Online edition of India's National Newspaper
Wednesday, Jun 30, 2004

Business

Business

Rupee breaches 46/$

MUMBAI, JUNE 29. Breaching the crucial 46 a dollar barrier, the rupee tumbled to one-week closing low of 46.08/10 today, pulled down by sustained heavy month-end dollar demand amidst dwindling supplies in volatile trading at the interbank foreign exchange market.

Declining by yet another steep 15 paise from Monday's close of 45.93/95, the rupee opened weak at 45.96/99, immediately pierced through the psychological 46 a dollar level and dipped to the early low of 46.05/07 on a virtual scramble to cover dollar positions, dealers said. It partially bounced back to 45.93/95 in the afternoon, supported by exporter dollar sales, but again succumbed to heavy dollar short-covering towards the fag end of the day to hit a low of 46.10/12, before settling at 46.08/10 at the close, they added. The rupee lost nearly ten paise yesterday due to the usual month-end dollar demand. It had last ended at weaker levels of 46.24/26 on June 22, a then 11-month closing low. The RBI fixed the reference rate for the U.S. currency at Rs. 45.96.

PTI

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