The Hindu : Business : Rupee loses moderate ground

Online edition of India's National Newspaper
Wednesday, Aug 25, 2004

Business

Business

Rupee loses moderate ground

MUMBAI, AUG. 24. The rupee lost moderate ground against the U.S. currency today on renewed dollar demand but trading was extremely quiet and range-bound at the interbank foreign exchange market, adversely affected by the nationwide bank strike.

Closing at 46.30/31 a dollar, nearly four paise decline from Tuesday's finish of 46.2650/2750, the rupee was wedged in a tight band of 46.2800 and 46.3100 in muted business. It opened weak at 46.28/30 on the back of a resurgent dollar overseas.

Public sector bank employees decided to go on a one-day token strike today over the delay in wage revision. While the Indian Banks Association (IBA) has pitched for a 9.5 per cent hike, the nine major bank unions have demanded at least a 15 per cent rise in wages of officers and sub-staff.

Traders expect the rupee to bounce back tomorrow, as the outlook for the unit remains positive on the back of the upward revision of the country's sovereign currency ratings by global rating agency Standard & Poor's and a slide in world oil prices. Crude oil prices slipped to below $46 a barrel with the U.S. light crude for October delivery quoted at $45.76 a barrel at the New York Mercantile Exchange in Asian trade.

— PTI

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