Date:21/08/2008 URL: http://www.thehindu.com/2008/08/21/stories/2008082151071900.htm

Business

Rupee drops further

MUMBAI: The rupee is fast moving to the 44-mark as it lost 11 paise on Wednesday to close at an 18-month low of 43.70/71 against the dollar on downward pressure owing to a sharp rise in trade deficit.

The rupee has lost 3.87 per cent in the six-day slide and about 11 per cent so far in the calendar year.

In wide movements at the interbank foreign exchange market, the rupee resumed lower at 43.68/70 a dollar and later fluctuated in a range of 43.66 and 43.86 during the day. It had closed at 43.59/60 a dollar on Monday.

Forex dealers said the rupee came under heavy pressure after a sharp rise in the country’s trade deficit on global crude oil prices hitting an all-time high last month. — PTI