Tuesday, May 30 2006 11:23 Hrs (IST) - World Time -

Mumbai: Sustained month-end dollar demand amid reduced foreign funds inflows today (May 30,2006) sent the sliding to a near six-month low of Rs 46.1950/2050 per dollar with the outlook bearish due to firm crude oil prices.

Nervousness once again gripped the Interbank Foreign Exchange market here this morning after customary month-end dollar demand exerted renewed severe pressure on the rupee amid reduced supplies from trade and FIIs inflows, a dealer said.

Opening on a firm note at Rs 46.10/12 per dollar, the rupee tumbled to multi-month lows of Rs 46.1950/2050, sharply lower from overnight five and half month closing lows of Rs 46.09/10 per dollar.

Volatile stock market, month-end corporate demand andconcerns on outflow of dollar by Foreign Institutional Investors (FIIs), were the main reasons behind the rupee slide, bankers said.

Firm crude oil prices at US$ 71.73 a barrel due to concerns over the Iran nuclear issue also weighed on rupee value, they added.

FIIs have sold equity shares worth US$ 56.2 million on May 26. FIIs have so far pulled out a massive US$ 1.6 billion in May.

In cross currency trade, the Euro was quoted at Rs 59.07/09, Pound Sterling at Rs 86.18/20 and a Japanese Yen (100) at Rs 41.18/21.