Rupee slips again

MUMBAI, AUG. 23. The rupee declined against the U.S. currency today on renewed dollar demand from corporates and importers despite expectation of improved dollar supplies from exporters complying with the central bank's deadline.

In a fairly active but cautious trade at the interbank foreign exchange market, the rupee ended at Rs. 45.77/79 a dollar, sharply lower from the overnight finish of Rs. 45.68/69 after dipping to intraday lows of Rs. 45.79/81. It opened at rs 45.68/70.

Steady dollar demand from the State Bank of India (SBI) and other State-owned banks exerted fresh pressure on the rupee while dollar supplies from exporters complying with the Reserve Bank of India's (RBI) deadline was limited, dealers said.

Banks holding short positions in anticipation of exporter dollar sales began covering their exposures which further weakened the rupee, they added.

The RBI early last week directed exporters to scale down balances in their exchange earners foreign currency (EEFC) accounts to 50 per cent by August 23.

- PTI

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Section  : Business
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