Rupee declines by four paise against dollar

Rupee declines by four paise against dollar
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First Published: Wed, Mar 26 2008. 12 35 PM IST
Updated: Wed, Mar 26 2008. 12 35 PM IST
Afternoon Update
Mumbai: The rupee on Wednesday reacted downwards by four paise to 40.15/16 against the US currency in late morning deals following some weakness in equity markets after overnight sharp gains.
In quite trade at the Interbank Foreign Exchange (forex) market, the Indian unit opened lower at 40.14/16 a dollar from Tuesday’s close of 40.11/12 and remained stable at 40.15/16 in late morning deals.
After appreciation of 61 paise or 1.5% in last straight four sessions, the rupee showed some sign of weakness in line with the equity markets.
The Indian benchmark Sensex, after overnight second largest 928 points gains in absolute term, was quoted up by over 18 points in a two-way trade this morning.
Most of the Asian indices also displayed narrowly mixed pattern of trading today.
Anticipation of intervention by the central bank also capped the rise in the rupee.
According to analysts, the rupee might gain on the back renewed capital inflows as Foreign Institutional Investors (FIIs) were net buyers in equity markets in last three sessions.
Meanwhile, the dollar gave back some of the recent gains Tuesday as weak US consumer confidence data put the spotlight back on a stagnant economy and the possibility of more interest rate reductions.
Early Morning
Mumbai: The Indian rupee eased on Wednesday, pushed lower by oil companies buying dollars, dealers said.
At 10:10 a.m., the partially convertible rupee was trading at 40.14/15 per dollar, slightly weaker than Tuesday’s close of 40.11/12, its highest since 29 February, according to Reuters data.
“Today, we’ve seen a lot of oil companies in the market, buying dollars,” said a trader with a state-run bank.
Indian oil refiners typically buy dollars at the end of the month to meet import commitments. India imports more than two thirds of its oil.
“Also, stocks are negative, and we’re expecting them to stay there,” the trader said.
India’s benchmark share index opened 0.3% higher on Wednesday, but then dipped into the red, mirroring choppy markets across Asia. The index was up 0.26% at 10.40 a.m. local time.
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First Published: Wed, Mar 26 2008. 12 35 PM IST
More Topics: India | Markets | Oil Refiners | Stocks | Rupee |