August 28, 2007	Tuesday	Sha’aban 14, 1428

KARACHI, Aug 27: The rupee fell to a four-and-a-half month low on Monday on increased dollar demand for import payments, as well as outflows from foreign investors selling holdings in the country’s stock market, dealers said.

The rupee closed at Rs60.80/82 to the dollar, compared with Saturday’s close of Rs60.68/70. It was the weakest closing since April 11.

Dealers said demand for the dollar had increased over the past few days, putting pressure on the rupee. Foreigners have also been selling stocks because of worry about the political outlook.

“There have been increased outflows from the stock market, and some importer demand is also there,” said a brokerage house dealer.

According to central bank data, the net outflow of foreign portfolio investment was $119.26 million from August 1 to August 23.

Dealers said the rupee was expected to face some downward pressure in the near-term.

In the money market, short-term money rates ended flat at around 9.5 percent, amid steady demand for funds. Dealers said inflows of more than Rs43 billion were due this week.—Reuters