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Monday, May 2, 2011

Forex:Market updates 2nd May

The rupee remained weak in late afternoon trades on Monday tailing the dollar's gains overseas and weak domestic equities.

Dollar buying by domestic oil refiners, biggest purchasers of the U.S. unit in the local forex market,pressure on the rupee.

Partially convertible rupee was at 44.355/340 per dollar, weaker than its previous close of 44.21/22. Intraday, it has moved in the 44.280-44.3750 range.

The dollar recovered from a three-year trough versus a currency basket on Monday, boosted by Osama bin Laden's death, but gains were limited and low U.S. interest rates were expected to keep the greenback weak.

The index of the dollar against six major currencies was up 0.12 percent at 73.024 points. It was at 72.898 points when the local forex market closed on Friday.

Big movements, however, are unlikely in the rupee before the central bank's policy on Tuesday where key rates are widely expected to be nudged higher by at least a quarter point.

Indian shares too fell on Monday on fear the central bank may adopt a hawkish stance in its policy on Tuesday.

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