The Hindu : Business / Briefly : Rupee ends lower

Online edition of India's National Newspaper
Wednesday, Oct 06, 2004

Business

Business - Briefly

Rupee ends lower

MUMBAI, OCT. 5. Undergoing a mild downward correction, the rupee today weakened slightly against the U.S. currency on renewed dollar demand from oil corporates due to a fresh surge in global crude oil prices, halting a smart three-session rally that helped it gain nearly 26 paise.

In an otherwise quiet and range-bound trading at the interbank foreign exchange market, the rupee closed at 45.86/87 a dollar, a two paise decline from Monday's finish of 45.84/85 after a distinctly weak opening of 45.87/89 following the dollar's overnight rally.

Global demand for dollars amidst rising oil prices, fuelled fresh spot-dollar purchases from large oil corporates which exerted mild pressure on the rupee even as sentiment remained positive for a smart turnaround on the back of steady trade and foreign fund inflows, dealers said.

The New York sweet crude oil for November delivery rose to over $50 a barrel and was quoted at $50.26 in Asian trade due to supply constraints.

The Rupee gained six paise yesterday and appreciated by 26 paise since September 28, driven-up by robust trade and foreign portfolio investment inflows.

The Reserve Bank of India fixed the reference rate for the U.S. currency at Rs. 45.86 and for the single European unit at 56.29.

Despite a slight downward correction today, the outlook for the rupee remained bullish due to heavy trade and foreign portfolio investment inflows, a dealer said. However, the global oil price trends would dictate the immediate future direction of the rupee, he added.

— PTI

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

Business

News Update

Stories in this Section