Date:02/08/2007 URL: http://www.thehindu.com/2007/08/02/stories/2007080261461900.htm

Business

Rupee reacts on sluggish equity markets

MUMBAI: The rupee on Wednesday reacted downward to close at 40.45/46 against the dollar following sluggish equity markets and a slowdown in capital inflows.

In fairly active trade at the interbank foreign exchange market, the Indian unit opened lower at 40.44/46 from Tuesday’s close of 40.3750/3800 a dollar.

Later, it moved erratically in a range of 40.43 and 40.5550 on alternate bouts of buying and selling.

Finally, it finished the day at 40.45/46, near seven paise higher than previous close.

A meltdown in worldwide equity markets which has a ripple effect on the Indian bourses also impacted negatively. — PTI,