Date:23/08/2006 URL: http://www.thehindubusinessline.com/2006/08/23/stories/2006082302630600.htm

Back Rupee weakens against dollar

Our Bureau

Mumbai, Aug 22

The rupee slipped against the US dollar on Tuesday due to demand for the greenback from domestic oil companies. "Oil prices rose today, due to which oil companies were seen buying dollars," said a dealer at a private bank.

The home currency opened at 46.50/51, touched an intra day low of 46.54 but recovered slightly on account of exporters selling dollars. It closed at 46.49/50 against the previous close of 46.45/46.

The rupee tracked the movement of the other global currencies, which also weakened against the dollar. "News about Iran's nuclear programme and tensions in West Asia strengthened the dollar. The dollar was seen as a safe currency," the dealer said.

The rupee is expected to weaken further in the week due to month-end demand from importers, the dealer said. In the forward-premia market, the six-month premium ended at 1.38 per cent (1.41 per cent) and the 12-month premium ended at 1.33 per cent (1.35 per cent).