The Hindu : Business : Rupee sheds 17 paise

Online edition of India's National Newspaper
Wednesday, Jul 14, 2004

Business

Business

Rupee sheds 17 paise

MUMBAI, JULY 13. T he rupee weakened further, losing yet another 17 paise against the U.S. currency on persistent heavy dollar demand amidst reduced supplies, following worries over the liberalisation of the foreign direct investment regime unveiled by the government in the Budget for 2004-05.

In nervous trading at the interbank foreign exchange market, the rupee closed at 45.86/87 a dollar, sharply lower from Monday's finish of 45.69/70 after a distinctly weak opening quote of 45.73/75. The rupee lost three paise yesterday.

It had spurted by 18 paise last Friday, buoyed by a further liberalisation on the foreign direct investment (FDI) regime in the budget proposals.

Concerns over Left parties' opposition to the budget proposal of raising the cap on FDI for three sectors, namely insurance, telecom and aviation, foreign funds kept away from the market and preferred to wait for a clearer picture to emerge.

Persistent heavy dollar demand amidst a slowdown in supplies owing to low volume trades in the stock and debt markets due to the ongoing agitation against the proposed transaction tax also exerted severe pressure on the rupee, dealers said. — PTI

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

Business