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This story is from May 16, 2007
Rupee goes down against US dollar
The rupee cut short a two-session gaining streak and fell by over eight paise to 40.96/97 against the US currency.
MUMBAI: The rupee cut short a two-session gaining streak and fell by over eight paise to 40.96/97 against the US currency on the back of dollar short-coverings and sustained capital outflows on Tuesday.
In volatile trade at the Interbank Foreign Exchange (Forex) market, the Indian unit opened strong at 40.78/80 a dollar due to sustained dollar selling by banks and exporters.
Continued weakness in dollar overseas also helped the rupee to surge at initial stages.
In New York, the dollar slipped against the euro on Monday as investors looked ahead to a draft of US data Tuesday, including April's consumer price report, that may set the tone for the dollar's performance this week.
Dollar buying by oil refinery companies in later stage to mop up dollar at lower levels to meet their import requirements also pushed the rupee downwards.
Sustained selling by Foreign funds in equity markets in last few days helped the dollar to recover early losses.
It closed at 40.96/97 a dollar, a fall of over eight paise from previous close of 40.8750/8850.
According to Reserve Bank of India's monthly bulletin, the central bank has garnered nearly USD 2.3 billion in the month of March to stem the sharp rise in the rupee, but were not able to sustained the intervention due to rising inflation.
Meanwhile, the Reserve Bank of India (RBI) on Tuesday fixed the reference rate for the US currency at Rs 40.87 per dollar and for the single European unit at Rs 55.39 per euro.
The rupee premiums on forward dollar declined due to fresh receiving by exporters. Benchmark six-month forward dollar premiums payable in October ended at 89 - 91 paise, down from 94 - 96 paise on Monday and the far-forwards maturing in April closed lower at 162-1/2 - 164-1/2 paise from 167-1/2 - 169-1/2 paise previously.
In cross currency trades, the rupee improved further against the British Sterling while it moved down against the Euro and the Japanese Yen.
The Indian unit edged up against the sterling to close at Rs 80.92/94 per pound from overnight close of Rs 80.95/97 per pound while declined against the single European currency to Rs 55.44/46 per euro from last close of Rs 55.39/41 per euro.
The rupee also eased against the Japanese unit to end at Rs 34.03/05 per 100 yen from previous close of Rs 33.96/98 per 100 yen.
In volatile trade at the Interbank Foreign Exchange (Forex) market, the Indian unit opened strong at 40.78/80 a dollar due to sustained dollar selling by banks and exporters.
Continued weakness in dollar overseas also helped the rupee to surge at initial stages.
In New York, the dollar slipped against the euro on Monday as investors looked ahead to a draft of US data Tuesday, including April's consumer price report, that may set the tone for the dollar's performance this week.
However, dollar short-covering by banks on expectation of intervention by the central bank weighed on the rupee and it fell back.
Dollar buying by oil refinery companies in later stage to mop up dollar at lower levels to meet their import requirements also pushed the rupee downwards.
Sustained selling by Foreign funds in equity markets in last few days helped the dollar to recover early losses.
It closed at 40.96/97 a dollar, a fall of over eight paise from previous close of 40.8750/8850.
According to Reserve Bank of India's monthly bulletin, the central bank has garnered nearly USD 2.3 billion in the month of March to stem the sharp rise in the rupee, but were not able to sustained the intervention due to rising inflation.
Meanwhile, the Reserve Bank of India (RBI) on Tuesday fixed the reference rate for the US currency at Rs 40.87 per dollar and for the single European unit at Rs 55.39 per euro.
The rupee premiums on forward dollar declined due to fresh receiving by exporters. Benchmark six-month forward dollar premiums payable in October ended at 89 - 91 paise, down from 94 - 96 paise on Monday and the far-forwards maturing in April closed lower at 162-1/2 - 164-1/2 paise from 167-1/2 - 169-1/2 paise previously.
In cross currency trades, the rupee improved further against the British Sterling while it moved down against the Euro and the Japanese Yen.
The Indian unit edged up against the sterling to close at Rs 80.92/94 per pound from overnight close of Rs 80.95/97 per pound while declined against the single European currency to Rs 55.44/46 per euro from last close of Rs 55.39/41 per euro.
The rupee also eased against the Japanese unit to end at Rs 34.03/05 per 100 yen from previous close of Rs 33.96/98 per 100 yen.
End of Article
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