Rupee ends sharply lower against US Dollar
The Rupee lost ground on steady dollar demand from oil corporates and importers for month-end considerations.india Updated: Feb 27, 2006 21:45 IST
The Rupee on Monday ended sharply lower at Rs 44.4250/4350 per dollar, pulled down by hectic month-end dollar demand even as outlook remains positive due to sustained FII inflows and partly buoyed by the government's strong 8.1 per cent economic growth projection this year.
Declining by six paise from last Friday's close of Rs 44.4250/4350, the Rupee gradually lost ground on steady dollar demand from oil corporates and importers for the customary month-end considerations, dealers said.
Relatively firm global oil prices at around 62 dollars a barrel also weighed on Rupee value even as robust FII inflows remained a comforting factor, they added.
Rupee, however, opened firm at Rs 44.38/40 per dollar.
Foreign Institutional Investors (FIIs) infused a whopping $225.60 million on February 24 and pumped in a massive $651.30 million last week.
A day ahead of the Union Budget, the Economic Survey projected a robust 8.1 per cent economic growth this fiscal even as it warned that there was risk of hardening interest rates, higher inflation and fiscal deficit in the face of global oil crisis.
The 2005-06 survey was tabled in Parliament by Finance Minister P Chidambaram, who promised to cut deficits and deal with the problem of unprecedented oil prices and upward pressure on interest rates.
Traders expect the Rupee to remain under pressure tomorrow due to usual month-end considerations.