Rupee slips on strong dollar demand

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Our Bureau

Mumbai, Sept. 8

The rupee slipped by about two paise against the greenback on continuing demand for dollars from domestic oil companies. The home currency opened at 46.16, touched an intra-day high of 46.25 and ended at 46.22. On Thursday, the rupee closed at 46.20. "Earlier in the day, the rupee strengthened to 46.12-46.14 level on reports of foreign funds flowing into the domestic equity markets," said a dealer at a private bank. "Later in the day, domestic oil companies were seen buying dollars, weakening the rupee," he said. Dealers said the rupee also tracked the movement of yen against the dollar. "Yen weakened against the dollar on reports of Japan refraining from hiking interest rates," he said. The sentiment seems to be bullish for the rupee and it is expected to trade between 46.10 and 46.35, he added. In forwards, the six-month premium ended at 1.34 per cent (1.27 per cent) and the 12-month premium at 1.33 per cent (1.30 per cent).

(This article was published in the Business Line print edition dated September 9, 2006)
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