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Fri: Rupee closes weak against dollar

The Indian currency closes lower against the dollar following fresh dollar demand by banks amid firm dollar overseas.

india Updated: Sep 08, 2006 20:18 IST

The Rupee on Friday turned slightly lower against the US currency following fresh dollar demand by banks amid firm dollar overseas.

In quiet trade at the Interbank Foreign Exchange (forex) market, the Indian unit resumed higher at Rs 46.14/16 per dollar from Thursday's close of Rs 46.19/20 per dollar.

Thereafter, it moved widely in a range of Rs 46.1300 and Rs 46.2400, before ending at Rs 46.2250/2350 per dollar, marginally lower than Thursday's close.

Rise in inflation also had some negative impact on the Rupee, forex dealers said.

Inflation crossed the 5 per cent mark and was quoted at 5.01 per cent for the week ended August 26 as against 4.91 per cent in the previous week and 3.33 per cent during the corresponding week last year, they added.

Meanwhile, Finance Minister P Chidambaram was confident of bringing back inflation below the five per cent level, even as he said that the price-line had shot up due to supply side disruptions of certain essentials.

Oil prices fell further in Asian trade on Friday as supply concerns eased after the US government reported an unexpected rise in gasoline (petrol) stocks and New York's main contract, light sweet crude for October delivery, was down by 34 cents at USD 66.98 dollars, while Brent North Sea crude for October shed 35 cents at $66.18 a barrel, dealers said.

However, the Indian currency ended firm against other major world currencies like the British pound, euro and the Japanese yen.

First Published: Sep 08, 2006 20:18 IST