Date:08/08/2006 URL: http://www.thehindubusinessline.com/2006/08/08/stories/2006080803960600.htm

Back Rupee slips against the dollar

Our Bureau

Mumbai, Aug. 7

The rupee slipped to 46.58/59 against the dollar on Monday due to strong demand for dollars from several domestic oil companies.

On Monday, the rupee opened strong at 46.42. However, sustained dollar buying pushed it lower to 46.59, against Friday's close of 46.55.

The yen strengthened against the dollar following the release of US non-farm payroll data. The data which revealed that fewer jobs were added to the US economy than market expectations weakened the dollar. "The home currency tracked the movement of the yen and opened strong," said a dealer at a private bank. "However, later in the day, the oil companies were seen buying dollars. This weakened the rupee," he said. The equity market was also weak, impacting the rupee, he said. Dealers said the movement of rupee against the dollar could only be judged after the Federal Open Market Committee (FOMC) meeting on August 8.

In the forward-premia market, the six-month ended at 1.08 per cent (1.04 per cent) and the 12-month ended at 1.16 per cent (1.16 per cent).