Processing .....please wait.. 
The article has been forwarded.... 
Rupee falls to a 10-month low
By agencies
|
Tuesday, 11 October 2005, 19:30 IST
MUMBAI: The rupee slid for a third straight day today, briefly hitting 44.91 per dollar before wariness of possible central bank intervention checked the dollar buying, helping the Indian unit recoup some losses.
The rupee was at 44.87/88 per dollar up from the days low but still 0.25 percent weaker than Monday's 10-month closing low of 44.76/77.
Traders said the rupee had found buying interest past 44.90 from several foreign banks, who were wary of selling it beyond that level on concerns the Reserve Bank of India (RBI) may start selling dollars to ease pressure on the local currency.
The rupee has been under pressure in recent sessions on worries that slowing foreign capital flows could leave it with little support in the face of a widening trade deficit and a strengthening dollar.
It posted its steepest single-day fall in 10 months on Monday, losing 0.85 percent on foreign capital outflows.
Latest data showed foreign funds were net sellers of $66.5 million worth of Indian stocks on Friday, taking sales over the final two sessions of last week to $195.9 million.
India's record trade deficit is increasingly worrying currency dealers and analysts as this year's steep rise in oil prices and growing machinery imports in an economy that grew an annual 8.1 percent in April-June have widened the gap.
Asia's third-largest economy imports 70 percent of its crude. The trade deficit widened to $15.8 billion in April-June from $11.5 billion the previous quarter.