The Hindu : Business : Rupee slips to 11-1/2 month low

Online edition of India's National Newspaper
Friday, Oct 21, 2005

Business

Business

Rupee slips to 11-1/2 month low

MUMBAI: The rupee on Thursday slipped to a 11-1/2 month closing low of 45.23/24 a dollar after a late round of hectic dollar short-covering amid sustained foreign institutional investment outflows prevented a possible rally on the back of fresh exporter dollar sales.

In choppy two-way trading at the interbank foreign exchange market, the rupee declined by seven paise from Wednesday's close of 45.16/17 following an early rally to a high of 45.13/15 after the dollar shed overnight gains against major currencies. It opened steady at 45.16/18.

Despite an initial sharp rally due to renewed exporter dollar sales amid a retreating dollar overseas, the rupee came under renewed pressure from a late bout of heavy dollar demand from banks following news that FIIs were net sellers in the stock markets for the third straight session on Wednesday.

The rupee that hit a peak of 45.13/15, tumbled to 45.23/24 at the close in line with the sell-off at the BSE, dealers said.

— PTI

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