The Hindu Business Line : Rupee ends lower on dollar demand

The rupee closed lower by about 35 paise in a volatile market, as the demand for the dollar continued to be strong. On Wednesday, the rupee opened at 42.20 and touched a low of 42.66/68, before closing at 42.44/45, against the previous close of 42.10/12. “There is genuine dollar buying by corporates, not just oil companies. It does not seem as though the RBI is present in the spot market,” said the chief forex dealer with a private bank. Dun & Bradstreet 217;s Economy Forecast for May 2008 said, “In view of a slowdown in foreign capital inflows, coupled with a surge in oil importer-led dollar demand, we expect the rupee to remain in the range of 41.5-41.7 during May 08.” The dollar was strong globally against currencies like the yen and pound. There was not much movement in the forward premia market, with the six-month closing at 1.68 per cent (1.66 per cent) and the 12-month at 1.33 per cent 91.32 per cent).

— Our Bureau

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