Date:01/06/2005 URL: http://www.thehindubusinessline.com/2005/06/01/stories/2005060101940600.htm

Back Rupee weakens to close at 6-week low

Our Bureau

MUMBAI: Strong month-end demand for the US currency and the weakening of other foreign currencies against the dollar drove the rupee down to a six-week low on Tuesday.

The rupee ended trade at 43.76/77 against Monday's close of 43.59/60. "The rupee's course will be clear in the first one or two days of the new month. The situation about the Infosys ADR is also unclear. We have no idea how much inflow will come or in what form. If that comes in, there will be good supply," the dealer said. This could put the rupee on an upward course.

"If the euro falls further or remains at this level, the rupee may touch levels of 43.85 this week. It is likely that the rupee may recover from this level, as exporters are likely to sell," the dealer said.

The forward premia market was also down, though it picked up in the latter half of the session. The 12-month premium closed at 1.09 per cent (1.04 per cent) and the 6-month premium ended at 1.09 per cent (1.08 per cent).