Date:27/06/2006 URL: http://www.thehindubusinessline.com/2006/06/27/stories/2006062703090600.htm

Back Rupee slips on dollar demand

Our Bureau

Mumbai, June 26

The rupee slid to another low against the dollar on account of heavy dollar demand from importers. The domestic currency opened at 46.18 and substantially depreciated to close at 46.38. On Friday, the rupee ended at 46.13. Dealers said that month-end demand from importers weakened the rupee against the dollar. There was also a spillover of the importers' demand on Friday, they said.

Globally, the US currency also strengthened against the euro and other global currencies, which affected the rupee's movement. "Foreign investors are heavily buying dollars, which has caused weakness among the other major currencies," said a dealer. The rupee is expected to trade in the 46.30-38 range in the next few days, said dealers. In the forward premia market, the six-month closed at 1.15 per cent (1.26 per cent) and the 12-month at 1.25 per cent (1.32 per cent).