Rupee slumps to multi-month low | Latest News India - Hindustan Times
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Rupee slumps to multi-month low

None | ByPress Trust of India, Mumbai
May 31, 2006 12:36 PM IST

Tumbling by another whopping 25 paise from overnight, the Rupee stood at Rs 46.28/30.

The Rupee on Wednesday continued to slide unabated, slumping to multi-month lows of Rs 46.53/55 per dollar due to sustained hectic dollar demand amid negligible supplies with the outlook distinctly bearish following a pull-out by foreign funds and rising crude oil prices.

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Tumbling by another whopping 25 paise from overnight near six-month closing lows of Rs 46.28/30, the rupee has depreciated by a massive 66 paise in three trading sessions, gripped by nervousness at the Interbank Foreign Exchange market due to frenzied dollar demand from all quarters amid restricted supplies, dealers said.

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The Rupee opened distinctly weak at Rs 46.42/44 per dollar.

Volatile stock market, month-end corporate demand and concerns on outflow of dollar by FIIs were the main reasons behind the steep rupee slide, a banker said.

Firm global crude oil prices at $71.86 a barrel in early Asian trade today due to lingering supply concerns also weighed heavily on rupee value, they added.

Foreign Institutional Investors (FIIs) showed equity shares worth $18.2 million on May 29 and a sharp injection of $56.2 million on May 26. FIIs have so far pulled-out a massive $1.6 billion in May.

Traders expect the rupee to remain under tremendous pressure due to usual month-end considerations, tight dollar supplies and absence of Central Bank interventions to arrest the slide. Exporters also kept a low profile in the market.

In cross currency trade, the Euro was quoted at Rs 59.76/79, Pound Sterling at Rs 87.43/46 and a Japanese Yen (100) at Rs 41.40/43.

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