The Hindu : Business : Rupee dips to 46.01/$

Online edition of India's National Newspaper
Thursday, Jul 15, 2004

Business

Business

Rupee dips to 46.01/$

MUMBAI, JULY 14. Persistent heavy all round dollar demand amidst dwindling supplies sent the rupee reeling under severe pressure for the third straight session today, driving it down to fresh over one-week closing low of 46.00/01 a dollar, reflecting the sustained losses at the stock market.

In nervous trading at the interbank foreign exchange market, the rupee lost another 15 paise from Tuesday's close of 45.86/87 and registered a steep decline of 35 paise since July 9 when it scaled a three-week peak of 45.36/38.

It opened weak at 45.92/94.

Reeling under pressure from the onset of business, the rupee breached the 46 a dollar barrier in early deals and slid to 46.02/04 in late morning trading.

Dollar-sales by exporters helped it rally to 45.94/96 and hovered between 45.95 and 45.99 for most of the afternoon business, before a late bout of heavy dollar short-covering pushed it down to 46.00/01 at close, a dealer said, adding "given the current glut for dollars from all quarters, it could test new low tomorrow".

Sustained heavy dollar demand from corporates and importers amidst a slowdown in foreign fund inflows continued to exert tremendous pressure on the rupee. — PTI

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