Rupee slips further against dolar
Extending overnight losses, the rupee drops further by six paise vis-a-vis the dollar in early trade on Wednesday.india Updated: Aug 23, 2006 12:06 IST
Extending overnight losses, the rupee dropped further by six paise on Wednesday against the US currency in early trade following firm dollar overseas and unwinding dollar-negative positions.
In quiet trade at the Interbank Foreign Exchange (Forex) market, the Indian unit opened low at Rs 46.53/54 per dollar as against Tuesday's close of Rs 46,4950/5050.
It declined further to quote at Rs 46.5550/5650 per dollar in late morning deals.
The dollar on Tuesday moved against its major rivals expecting a further recovery as disappointing euro-zone data combined comments from US Federal Reserve officials to support the greenback ahead of a key economic report.
Though the world crude oil prices fell below $78 a barrel after touching a low of $70 a barrel it once again started to show a firm trend and was quoted near $73 a barrel and that forced banks to buy dollars for their oil PSU clients, forex dealers said.
Slow down in foreign institutional investors (FIIs) inflows for the last couple of days also impacted negatively on the rupee value, they added.