Date:14/09/2005 URL: http://www.thehindu.com/2005/09/14/stories/2005091412181600.htm

Business

Rupee turns weak against $

MUMBAI: The rupee on Tuesday turned weak against the U.S. dollar on the interbank foreign exchange market due to fresh dollar demand, mainly from oil PSUs and to some extent from importers.

The rupee opened on a weak note at 43.84/85 a dollar against 43.83/84 and thereafter moved between 43.9125 and 43.8400, before concluding at 43.9050/9125, lower than the previous close. Firm trend in dollar against other world currencies also had its impact on the Indian currency, dealers said. The dollar rebounded slightly against the yen after an expected election win for the Japanese Prime Minister, Junichiro Koizumi's ruling party.

Meanwhile, the U.S. currency also gained against the euro, amid expectations that the U.S. Federal Reserve would continue to hike interest rates and also due to renewed worries over Germany's upcoming election which put pressure on the euro, dealers said.

PTI