Millennium Post

Re falls 41p to log all-time low of 59.68 against $

The rupee on Monday reacted downwards by 41 paise to reach its all-time closing low of 59.68 against the Greenback following weakness in local equities amid month-end dollar demand from importers.

Sustained capital outflows and firm dollar overseas also kept the rupee under pressure.At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 59.55 a dollar as against last weekend's close of 59.27 and continued its downslide to a low of 59.83 before recovering some ground to settle at 59.68, still showing a fall of 41 paise or 0.69 per cent. Last Friday, it had gained by 30 paise or 0.50 per cent. Month-end dollar equirements from importers, mainly oil refiners, weighed on the rupee, a forex dealer said.The dollar index was up by 0.21 pct against a basket of six major global rivals.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,'Rupee closed weak today taking cues from strong dollar in the international market and weak equities in the domestic front. Strong month end Dollar demand from oil importers also weighed high which pushed Rupee again past the 60.00 (futures) levels during its intraday trading. It is expected to trade weak in the next few trading sessions and cross the psychological barrier of 60 levels, where RBI might intervene and sell dollars to ease some pressure on Dollar. We expect Rupee to trade in the range of 58.40 to 60.31 levels tomorrow. '

'Driven by huge outflows from debt markets and consistent strength in dollar, the rupee fell towards 59.83 levels. FIIs have sold cash shares for nine straight sessions, totalling Rs 7,760 crore. Euro falling towards $1.3078 levels against dollar also contributed to the fall in rupee,' said Abhishek Goenka, Founder and CEO, India Forex Advisors.

For June so far, FIIs have offloaded shares and debt securities worth over $5 billion. The economic logic for foreign funds to invest in domestic debt instruments is withering away as yield differentials are narrowing fast, traders said.Meanwhile, premium for forward dollar recovered on fresh payments from banks and corporates. Benchmark six-month forward dollar premium payable in November rose to 153-155 paise from last Friday's close of 151-1/2-153 paise. Far-forward contracts maturing in May also firmed up to 315-1/2-317-1/2 paise from 310-1/2-312 paise.
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