The Hindu : Business : Rupee loses 13 paise

Online edition of India's National Newspaper
Tuesday, Jul 20, 2004

Business

Business

Rupee loses 13 paise

MUMBAI, JULY 19. Notwithstanding a firm start, the rupee succumbed to renewed heavy dollar demand today, halted the previous session's central bank supported rally and lost a fresh 13 paise to close at 46.08/09 a dollar at the interbank foreign exchange market here.

Opening on a distinctly firm note at 45.84/87, reflecting the dollar's tumble against major global currencies, particularly the euro and the pound sterling, and helped partly by bunched up weekend dollar supplies, the rupee later succumbed to heavy all-round dollar demand.

It dipped to 45.94/96 around noon, then pierced through the 46 a dollar barrier and plunged to the day's low of 46.09/11 at the fag end of the day, before settling at 46.08/09 at close, dealers said. Foreign, private and government banks were all actively bidding the dollar in late afternoon trade, possibly for their corporate clients, mainly offshore oil majors, they added.

"Large oil companies were making heavy dollar purchases on a daily basis, possibly because of the surging global oil prices.

Defence-related importers and some other corporates were also covering their short-dollar positions," a forex dealer said. A slowdown in the foreign capital inflows further aggravated the rupee woes," he added.

PTI

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

Business