Rupee inches low at 39.90, ahead budget

Mumbai, Feb 29: The spot rupee resumed low by three paise at 39.90 per US Dollar this morning session, ahead of the federal budget, with declines in Asian stock indices weighing on sentiments, dealers said.

Later, it quoted between at 39.85 to 39.95 per dollar, losing ground from the previous close of 39.87/88. It had hit a five-month low of 40.25 last week. The dollar fell to the lowest level in almost three years against the Yen on Friday after downbeat comments on the economic outlook from Federal Reserve Chairman Ben Bernanke, dealers said.

The rupee moved in tandem with the stock market's performance for most of the day, as traders refrained from picking up fresh positions on the eve of the Union Budget.

The index for 'Manufactured Products' group rose by 0.2 per cent to 190.2 (Provisional) from 189.9 (Provisional) for the previous week. The index for 'Food Products' group rose by 0.1 per cent to 196.2 (Provisional) from 196.0 (Provisional) for the previous week due to higher prices of gingelly oil (three per cent) and khandsari, groundnut oil, gur and cotton seed oil (one per cent each).

However, the prices of ghee (one per cent) declined. The index for 'Textiles' group declined by 0.1 per cent to 127.6 (Provisional) from 127.7 (Provisional) for the previous week due to lower prices of tyre cord fabric (11 per cent) and hessian and sacking bags (three per cent).

The index for 'Rubber and Plastic Products' group rose by 0.1 per cent to 163.6 (Provisional) from 163.5 (Provisional) for the previous week due to higher prices of giant tubes (five per cent).

The index for 'Chemicals and Chemical Products' group rose by 0.1 per cent to 208.7 (Provisional) from 208.4 (Provisional) for the previous week due to higher prices of soda ash (sodium carbonate) (eight per cent).

However, the prices of ampicillin trihydrate (15 per cent) declined.

The index for 'Non-Metallic Mineral Products' group declined by 0.05 per cent to 211.4 (Provisional) from 211.5 (Provisional) for the previous week due to marginal fall in the prices of cement.

The index for 'Basic Metals Alloys and Metal Products' group rose by 0.7 per cent to 250.6 (Provisional) from 248.8 (Provisional) for the previous week due to higher prices of narrow cr steel strips (15 per cent), other iron steel (seven per cent), basic pig iron, foundary pig iron and lead ingots (six per cent each) and cr sheets ans ms bars and rounds (three per cent each).

UNI