The Hindu : Business : Sharp fall in rupee

Online edition of India's National Newspaper
Tuesday, Oct 25, 2005

Business

Business

Sharp fall in rupee

MUMBAI: The rupee on Monday declined sharply against the U.S. currency after a strong global dollar fuelled renewed hectic dollar buying amid strained supplies with sentiments partly affected because of the meltdown at the Bombay Stock Exchange.

Halting a brief weekend rally, the rupee came under severe pressure again after hectic dollar demand on the back of a robust dollar overseas which drove it down to 45.16/17 a dollar at the close, a sharp ten paise drop from last Friday's close of 45.06/07.

The rupee opened distinctly weak at 45.17/18 following the U.S. currency's surge against major global currencies, mainly the euro. Sliding world oil prices notwithstanding, the rupee tumbled on hectic dollar demand following a resurgent dollar overseas amid FII outflows, a dealer said, adding ``the rupee appears set to test new lows.''

World crude oil prices were hovering around $59.88 a barrel in Asian trade on Monday due to easing supply concerns.

The rupee plunged to a 11-1/2 month low of 45.23/24 a dollar on October 13.

PTI

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