Rupee dips past 47 against $

MUMBAI, MAY 15. Consistent dollar shortcoverings by banks at early stages extended the string of rupee downslide to the fifth session in a row, pushing the Indian unit past 47 level in fairly volatile trading at the inter-bank foreign exchange market here today.

However, it recovered smartly following heavy dollar selling by banks due to export bookings as well as sizable dollar supplies in the latter part of the session but still ended weak at 46.99/47 against the overnight close of 46.9650/9750.

The dollar inflow from foreign funds reportedly was heavy on the Indian bourses as foreign institutional investors welcomed the decision by the Securities and Exchange Board of India to ban the carry forward mechanism in a bid to contain the price manipulations.

The rupee has depreciated by over 11 paise since May 8 in the light of continuous dollar demand from corporates and importers.

Meanwhile, the Reserve Bank of India fixed the reference rate at Rs. 47 a dollar against Rs. 46.90 yesterday.

- PTI

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