RTRS:Indian rupee down on dollar demand, weak local shares
MUMBAI, Dec 27 (Reuters) - The Indian rupee weakened
further in afternoon trade on Tuesday dragged by dollar demand
from local oil refiners and bunched-up outflows as U.S.
financial markets resume after an extended Christmas holiday.
* Negative sentiment in local share market as investors
turned wary about building positions before the quarter ends
weighed on the currency too, traders said. The main share index
was down 0.9 percent.
* At 2:25 p.m. (0855 GMT), the rupee was at
52.93/94 to the dollar, weaker than Monday's close of
52.7250/7350.
* The unit has so far moved in a band of 52.75 to 52.98 and
some traders believe the unit could breach the 53-mark later in
the session.
* A trader said news that Japan and India were inching
closer to a dollar swap agreement did not make a splash as
traders await the deal announcement and inflows.
* Oil is India's biggest import item and consequently, local
oil refiners are the largest buyers of dollars in the domestic
foreign exchange market.
