Date:29/07/2004 URL: http://www.thehindubusinessline.com/2004/07/29/stories/2004072902050800.htm

Back Rupee closes 10 paise down

Our Bureau

MUMBAI: `Genuine' corporate demand for the greenback drove the domestic currency to close weaker by ten paise on Wednesday at 46.31/32 per dollar.

The rupee had ended at 46.21/22 in the previous trading session.

The rupee's lowest level seen was at around Rs 46.39 from which levels onwards supply of dollars by PSU banks, perhaps at the behest of the RBI, propped up the rupee, said a dealer with a private sector bank.

The downward trend in the rupee was largely fuelled by demand for dollars from a Delhi-based public sector unit's demand to the tune of $70 million-80 million, he added.

Overseas, the US currency had jumped sharply against other major currencies after the US consumer confidence index data came higher than expectations, said dealers. Substantial demand for dollars spurred by higher oil prices has also added to the pressure on rupee, they added.

The forwards moved up yet again with the six-month closing at 2.50 per cent (2.39 per cent) while the 12-month closed at 1.96 per cent (1.95 per cent).