Rupee drops 7 paise against dollar

MUMBAI, NOV. 13. The rupee declined sharply against the U.S. currency today, dragged down by heavy bunched-up dollar demand from banks after the overnight Veteran's Day holiday in New York.

In fairly hectic trading at the interbank foreign exchange market, the rupee closed at 48.0550/0600 a dollar, a steep seven paise drop from Monday's finish of 47.9850/9900.

It opened on a weak note at 48.00/02 and dipped to intraday low of 48.06/07 as steady dollar demand from banks outstripped the available local supplies.

Heaped-up dollar demand from banks after the U.S. Veteran's day holiday amidst thin supplies from exporters exerted renewed pressure on the rupee. Both foreign and public sector banks were actively bidding the dollar, dealers said.

The forex market will remain closed tomorrow, November 14, on account of Diwali-Laxmi Puja and on November 16 for Diwali-Bhau- Bij.

``There was not much activity in the market and in shallow volumes, the piled-up dollar demand from banks exaggerated the rupee's decline against the U.S. currency, a forex dealer said.

- PTI

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