The Indian rupee closed at a new low of Rs.51.10/12 against the US dollar as importers increased demand for dollars and foreign investors withdrew $59.20 million from capital markets. The heavy demand from importers and flight of funds from domestic and international financial institutions selling in capital markets contributed to the rupee's decline. Earlier in the day, state-run banks intervened to support the rupee but were unable to prevent it from falling to a new low.

1. Rupee closes at new low
The Indian rupee closed at a new low of Rs.51.10/12 against one US dollar as importers stepped
up demand for the greenback and foreign investors pulled out $59.20 million from capital markets
during the day.
The Indian rupee closed at a new low of Rs.51.10/12 against one US dollar as importers stepped
up demand for the greenback and foreign investors pulled out $59.20 million from capital markets
during the day.
The rupee had touched a historic intra-day low at Rs.51.17 to a dollar but recovered to close at
Rs.51.10-levels.
It had ended Thursday at Rs.50.45.
'There is a heavy demand from importers and a flight of funds due to domestic and international
financial institutions selling at capital markets,' said Jagannadham Thunuguntla, chief executive of
New Delhi-based brokerage firm SMC group.
Earlier in the day, the rupee stabilised as state-run banks intervened to lift it from the Rs.51 levels. It
was, however, not enough, as the Indian currency fell later.
Gold remained in high demand and closed at about Rs.15,411 per 10 grams.
- Indo Asian News Service
Page 1/1
© Copyright 2006 India PRwire Pvt. Ltd. All Rights Reserved.
India PRwire disclaims any content contained in press releases published on IndiaPRwire.com. Issuers of press releases are solely responsible for the
accuracy of their content.