Rupee Sheds 32 Paise to 45.84/85 Against US Dollar

Mumbai
Rupee Sheds 32 Paise to 45.84/85 Against US Dollar
outlookindia.com
-0001-11-30T00:00:00+0553
The Indian rupee plummeted by 32 paise to a fresh 10-week-low of 45.84/85 against the American currency today amid sluggish domestic equities and dollar demand from importers.

In fairly active trade at the Interbank Foreign Exchange, the domestic unit opened lower at 45.61/63 per dollar against Thursday's close of 45.52/53.

It later moved in a range between 45.57 and 45.91 before ending at 45.84/85, a 0.70 per cent decline vis-a-vis the previous close. In yesterday's trade, the Indian rupee gained 18 paise against the US dollar after a prolonged downslide.

Volatility in the domestic stock market over the corporate loan

scandal weighed on the rupee's fortunes as well. The Bombay Stock Exchange benchmark Sensex tumbled by 181.55 points, or 0.94 per cent, today. In the past four trading sessions, it has lost 820.98 points, or 4.11 per cent.

A fresh sell-off by foreign institutional investors (FIIs) also put pressure on the rupee. FIIs pulled out USD 116.6 million out of the Indian economy on November 25, as per SEBI data, and looking at the bearish trend in the stock market and the recent 2G spectrum and corporate loan scam, forex dealers expect to see more selling in the coming days.

Month-end dollar demand from importers, mainly oil refiners, also contributed to the rupee's fall.

The dollar index, consisting of six major currencies, was up nearly 0.7 per cent in Europe this afternoon.

Meanwhile, global crude oil was trading below USD 83 a barrel in London today.

The rupee premium for the forward dollar closed lower today on fresh receivings by exporters. The benchmark six- month forward dollar premium payable in April ended lower at 106-108 paise, as against 109-1/2-110-1/2 paise yesterday.

Far-forward contracts maturing in October also settled lower at 193-195 paise, compared to 197-1/2-199 paise previously.

The Reserve Bank of India has fixed the reference rate for the dollar at Rs 45.74 and the euro at Rs 60.84.

In cross-currency trade, the domestic currency fell back against the pound sterling and the Japanese yen, but moved up against the euro.

The rupee declined to Rs 71.88/90 against the pound sterling from Thursday's close of Rs 71.70/72 and also fell Rs 54.70/72 per 100 yen from Rs 54.46/48 previously.

However, it hardened to Rs 60.55/57 per euro from the last close of Rs 60.65/67.
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