Date:13/07/2006 URL: http://www.thehindubusinessline.com/2006/07/13/stories/2006071303130600.htm

Back Rupee plunges on blast impact

Mumbai, July 12

Tuesday's serial bomb explosions in Mumbai did have an impact on the rupee. The currency dipped to 46.24 on dollar buying in thin trade. The domestic currency opened at 46.27/28 and moved in the range of 46.20-46.22 to finally close at 46.24.

On Tuesday, the rupee closed at 46.17/18. Dealers said that there was thin trading in the market due to low attendance on account of the bomb blasts. There was hardly any movement in the market, said a dealer at a private bank.

The Reserve Bank of India may intervene in the near future if there is wide spread panicky in the market, he said. The dollar strengthened against other global currencies. It strengthened against the yen, over the speculations of a possible change in interest rate in Bank of Japan meet in the next two days, the dealer said.

Further, the direction of the rupee against the dollar would depend on the trade related data to be released by the US government in the evening. In the forward premia market, the six-month closed at 1.10 per cent (1.09 per cent) and the 12-month at 1.21 per cent (1.20 per cent).