Rupee erases gains as importers buy cheaper dollars

Rupee erases gains as importers buy cheaper dollars
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First Published: Tue, May 15 2007. 01 50 PM IST
Updated: Tue, May 15 2007. 01 50 PM IST
Anoop Agrawal, Bloomberg
Mumbai: The rupee fell, erasing earlier gains, as importers used the currency’s recent gain to buy dollars.
The rupee advanced earlier to the highest in a week prompting importers, such refiners and telecommunication companies, to buy dollars, said Vikas Babu, a trader at state-owned Andhra Bank Ltd. India meets three-quarters of its energy needs from abroad.
“Refiners and other companies are buying dollars as the rupee seems to have peaked for now,” Mumbai-based Babu said. “We may see the rupee decline further today.”
The rupee fell 0.1% to 40.92 against the dollar as of 12:35 pm from 40.88 yesterday in Mumbai, according to data compiled by Bloomberg. The currency rose to as high as 40.78 earlier today, the highest intraday level since 8 May.
The currency may decline to 40.95 today, Babu said.
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First Published: Tue, May 15 2007. 01 50 PM IST
More Topics: Money Matters | Currency |