Date:10/05/2005 URL: http://www.thehindu.com/2005/05/10/stories/2005051005561800.htm

Business

Rupee loses further ground

MUMBAI: The Indian currency on Monday lost more ground against the U.S. currency, adjusting to a further downward correction. A resurgent dollar overseas fuelled heavy local dollar buying interest even as healthy trade and foreign institutional investment inflows limited losses. In slightly nervous trading at the interbank foreign exchange market, the rupee ended at 43.48/49 a dollar, a 4-1/2 paise decline from last Friday's close of 43.4350/4450, but a smart recovery from the early low of 43.5275/5350.

The rupee opened distinctly weak at 43.50/52 following the U.S. currency's sharp week-end rally against major global currencies, mainly the euro.

The rupee adjusted to a further downward correction after a strong week-end dollar rally spurred renewed heavy local dollar demand but bunched up dollar supplies from trade and other avenues cushioned the fall, a forex dealer said.

PTI