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Rupee drops on speculation that importers will buy dollars

Rupee drops on speculation that importers will buy dollars
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First Published: Thu, Mar 29 2007. 10 07 AM IST
Updated: Thu, Mar 29 2007. 10 07 AM IST
By Anoop Agrawal,Bloomberg
Mumbai: Rupee fell, halting a three- day rally, on speculation importers will increase dollar purchases to settle month-end bills.
The currency’s 2.1% gain this month may encourage companies such as Indian Oil Corp., the country’s biggest refiner, to buy dollars needed to pay for imports.
“Dollar demand will strengthen for month-end payments in the next few days,” said Vikas Babu, a currency trader at state-owned Andhra Bank in Mumbai. “Refiners may step up dollar purchase because of the rise in crude prices. The rupee may stay weak.”
The rupee fell by 0.7 to 403.3235 to the dollar as of 9:15 a.m. in Mumbai, according to data compiled by Bloomberg.
Crude oil was held near a six-month high of $63.99 a barrel in New York after UK Prime Minister, Tony Blair, increased efforts to push Iran to release 15 naval personnel.
India meets three-quarters of its energy needs from abroad.
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First Published: Thu, Mar 29 2007. 10 07 AM IST
More Topics: Money Matters | Currency |