Published on Fri, Aug 11, 2006 at 12:43 | Source : reuters
Updated at Fri, Aug 11, 2006 at 17:52
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Rupee eases as dollar gains on weak Japan data
The rupee weakened on Friday as the US dollar gained ground in Asian markets on weaker-than-expected Japanese economic data. At 9:30 a.m., the partially convertible rupee was at 46.47/48 per dollar, off an early low of 46.51. It ended at 46.42/43 on Thursday, reports Reuters.
The rupee weakened on Friday as the US dollar gained ground in Asian markets on weaker-than-expected Japanese economic data. At 9:30 a.m., the partially convertible rupee was at 46.47/48 per dollar, off an early low of 46.51. It ended at 46.42/43 on Thursday, reports Reuters.
Dealers said the rupee found support at 46.51, as some dollar sales were seen at this level."There were little dollar flows. The rupee's weakness was more to do with the dollar's gains in the Asian markets," said a dealer with a private bank.
Asian currencies fell against the dollar after data showed Japan's economy grew slightly less than expected in the three months to June.The Bank of Japan on Friday left interest rates unchanged at 0.25%, a month after it raised rates for the first time in six years.
Dealers said they expected dollar demand from oil companies to subside later due to a fall in global crude prices, now trading above USD 74 a barrel. Indian imports more than two-thirds of its oil requirements and higher crude prices raise the risk of widening the deficit and weakening the rupee.
Dealers said they expected dollar demand from oil companies to subside later due to a fall in global crude prices, now trading above USD 74 a barrel. Indian imports more than two-thirds of its oil requirements and higher crude prices raise the risk of widening the deficit and weakening the rupee.
