Date:19/04/2006 URL: http://www.thehindubusinessline.com/2006/04/19/stories/2006041903040600.htm

Back Rupee falls on dollar buying

Our Bureau

Mumbai, April 18

The rupee dipped against the greenback on Tuesday on the back of dollar buying particularly by oil companies. The domestic currency opened at 45.07/09 and touched an intra-day low of 45.28. It closed the day at 45.18, down from 45.12 on Monday. Dealers said the sharp rise in global crude prices led oil companies to purchase dollars in the market. A dealer at a private bank said though there was sufficient dollar supply in the market, there has been all-round corporate buying as well. "Globally, despite the appreciation of the euro and the pound, the rupee has not gained much. The fact that the central bank had been buying dollars and preventing the appreciation of the rupee, seems to have created a view veering towards a weak rupee," said the dealer. In the forward premia market, the 6-month closed at 1.12 per cent (1.47) and the 12-month at 1.44 per cent (1.16).