Date:22/04/2008 URL: http://www.thehindubusinessline.com/2008/04/22/stories/2008042252730600.htm

Back Rupee ends lower

Mumbai, April 21

The rupee closed lower against the dollar on Monday as State-run banks bought dollars, on possible instructions from the central bank, said a dealer. The rupee opened higher at 39.82/83, which was also the day’s high, as dealers unwound positions after the Reserve Bank of India hiked CRR last week. It closed lower at 39.95/96, against Thursday’s close of 39.92. “During the day the rupee’s movement was totally one-sided, mainly on support from centra l bank for the dollar,” said a forex dealer with a private bank. In the overseas market, the dollar lost ground against other currencies such as euro, yen and Swiss franc. The forward premia increased by as much as 17 paise, after the CRR announcement. “People expect the rupee to appreciate, but the question is will the RBI let it appreciate,” the dealer said. The six-month premia opened at 3.09 per cent (2.65 per cent) and the 12-month at 2.38 per cent (1.96 per cent).

— Our Bureau