The rupee weakened for a second session on Tuesday, weighed down by the US. Currency's broad rally overseas and some dollar buying by local oil refiners. The rupee ended at 43.5750/5800 per dollar, 0.06 percent weaker than Monday's 43.5475/5525 close. Traders said the rupee was also hurt by the MUMBAI stock index's fall following an attack by gunmen at a religious site in northern India that is claimed by both Hindus and Muslims and is a flashpoint for sectarian strife.
For details, double-click on. "It was a combination of factors, the main one being the euro's weakness against the dollar," a trader at a state-run bank said. "We saw the rupee go to 43.5975 before (dollar) selling came in."
Dealers said the rupee, however, received good support at lower levels, as foreign capital inflows remain fairly robust, and the currency looked likely to stay in a range determined largely by the dollar's moves overseas.
In European trade, the dollar was hovering near a 14-month high against the euro as it continued to gain from the prospect of rising US. interest rates and higher yields.
The single currency fetched $1.1882/85, not far off $1.1869, the dollar's strongest level since May 2004.
Overseas funds have bought a net $127.4 million of stocks in the first two days of July, following purchases of $1.33 billion in June. Their net 2005 stock purchases now total $4.8 billion.
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