Rupee eases further

MUMBAI, JULY 26. The rupee eased further against the U.S. currency today but ended off early intra-day low, weighed down by mild month-end pressures, in an otherwise quiet but slightly nervous trading at the inter-bank foreign exchange market.

Declining by another 1-1/4 paise from the overnight level of 47.14/15, the rupee logged a closing quote of 47.1525/1575 a dollar in thin dealings after being trapped in a tight range of 47.1500 and 47.1650. It opened on a soft note at 47.1450/1550. The rupee depreciated by 2-1/2 paise yesterday, pulled down by usual month-end dollar demand.The customary month-end dollar demand from corporates and importers weakened the rupee, but moderate dollar supplies provided by exporters and some foreign fund inflows partly cushioned the rupee's fall, dealers said.

``A spillover of overnight dollar short-covering threatened to test the rupee's downside and pushed the currency lower to 47.1600/1650 in late morning deals, but some dollar supplies from exporters, led banks to unwind positions and prevented a rupee slide," a dealer said.

- PTI

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