* Rupee ends at 54.38/39 per dlr vs 54.14/15 on Monday
* Indian economy expected to grow 6.4 pct this fiscal - PM
* Budget session watched for passage of key bills
By Subhadip Sircar
MUMBAI, April 23 The Indian rupee fell to its
lowest in a week on Tuesday, logging a second successive day of
loss, as importers continued to buy dollars and a weak euro
posed headwinds to the currency.
Dollar demand from importers, particularly oil and gold
buyers, has been consistently strong in recent sessions with
global commodity prices plummeting, dealers said.
The dollar demand has prevented the rupee from gaining,
though recent macroeconomic indicators have signalled a positive
India's economy is expected to grow at 6.4 percent in the
current fiscal year and the slowdown in economic growth has
bottomed out, the Prime Minister's Economic Advisory Council
said in a report on Tuesday, a more optimistic projection than
that of most private estimates.
The panel said it expects the full-year current account
deficit, seen as the main worry for the economy, to narrow to
4.7 percent in the current financial year from 5.1 percent last
year, helped by higher exports and lower gold imports.
The partially convertible rupee closed at 54.38/39
per dollar, weaker than its close of 54.14/15 on Monday. It fell
0.4 percent, its biggest single day fall since April 4.
It had fallen to 54.42 in session, its lowest level since
Indian financial markets will be shut on Wednesday for a
"The demand for dollars is much higher from importers and
oil companies. If we see some foreign investor outflows in May,
the rupee can move towards 55 to the dollar," said Param Sarma,
chief executive at NSP Forex in Mumbai.
The euro hit a two-week low against the dollar on Tuesday
after weak German data fanned concerns about the euro zone
economy and speculation the European Central Bank could cut
Dealers are also closely watching political developments,
with key bills lined up for passage in the second half of the
budget session of parliament.
In the offshore non-deliverable forwards, the
one-month contract was at 54.56, while three-month was at 55.15.
In the currency futures market, the most-traded
near-month dollar/rupee contracts on the National Stock
Exchange, the MCX-SX and the United Stock Exchange all closed
around 54.37, with a total traded volume of $5.6 billion.
(Editing by Jijo Jacob)