The Hindu : Uptrend halted in rupee

Online edition of India's National Newspaper
Saturday, Jun 14, 2003

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Uptrend halted in rupee

MUMBAI JUNE 13. Fresh dollar demand from corporates and importers weakened the rupee today, cutting short a three-session sharp rally that took it to over 26-month peak, but it ended off intraday low in fairly active trading at the interbank foreign exchange market.

The domestic unit closed at 46.72/73 a dollar, a sharp 4-1/2 paise decline from Thursday's close of 46.6750/6850 after dipping to intraday low of 46.74/75 on renewed dollar demand from banks for their corporate clients. It opened weak at 46.68/69. A fresh round of heavy dollar short-covering by corporates and importers halted the smart rally in rupee and exerted moderate pressure on the rupee even as healthy dollar supplies from export proceeds and inward remittances limited its losses, dealers said.

The rupee spurted by nearly 20 paise and scaled a new 26-month peak against the greenback in the last three straight sessions, backed by robust trade and capital inflows.

"Corporates and importers appear keen on covering their open exposures at current lucrative levels," a dealer said. — PTI

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