2010.09.2009:09:00UTC+00Indian rupee slacked from 3 month high

• Indian rupee retreated from 3 month high of 43.835/845 to 45.70/71 per dollar
• The decline was due to dollar demand from oil companies and importers.
• Indian shares rose 1.6pct,a 32 month high
• Foreigners have bought $15.8bn shares in 2010 v/s $17.5bn in 2009.
• Rupee is up 1.8pct this year
• NSE and MCX-SX closed at 45.76 and 45.75 respectively.

Quote:

•  "There was importer covering plus some profit taking on previous sales in late trade.But the rupee's move has been sharp, and there is a feeling that in the short run, the market has extended itself a bit. Broadly exporters still haven't hedged enough. Eventually, we will see exporters come in at say 46.00 levels" - Ananth Narayan G., head of fixed income, currencies and commodities, South Asia at Standard Chartered Bank in Mumbai.

Background:

• Rupee strengthened 1.4pct last week and RBI hiked interest rate to curb inflation.