Date:05/08/2008 URL: http://www.thehindubusinessline.com/2008/08/05/stories/2008080552100600.htm

Back Rupee down 13 paise

Mumbai, Aug. 4

The rupee closed about 13 paise lower against the dollar on Monday due to dollar buying by oil companies and news of Iran going ahead with its nuclear programme. The rupee opened at 42.45/46 and touched a high of 42.34. However, following this, the rupee moved down continuously and closed at 42.48/49, lower from the previous close of 42.35/36.

A forex dealer with a public sector bank said that there was heavy demand from oil companies. The stock market going into negative territory for some part of the day also resulted in dollar buying, he added. The rupee’s movement will track the oil price and is unlikely to cross 42.25, the dealer said. The forward premia also moved lower with the six-month closing at 4.22 per cent (4.6 per cent) and the 12-month closing at 3.54 per cent (3.88 per cent). –

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