Millennium Post

Re plunges 55p to more than 1-month low of 54.8 per $

The rupee on Friday tanked by a massive 55 paise to close at over one-month low of 54.8 on dollar strengthening in global markets tracking favourable US job data and oil-related forex payments by Indian refiners.

‘The factors that hit rupee today are mainly external. Favorable US job data pushed up the dollar. Additionally, the Greenback strengthened against yen. On the domestic front, heavy dollar demand from oil importers kept the local currency weak,’ said N S Venkatesh, Head (Treasury) at IDBI Bank.

The rupee commenced the day sharply lower at 54.57 against previous close of 54.25 at the Interbank Foreign Exchange (Forex) market. As the day progressed, it recovered some ground and rose to 54.44 but again plunged later to 54.81, before settling down at 54.8, a fall of 55 paise, or 1.01 per cent, against the dollar from its previous close. This is rupee’s lowest level since April 5 this year, when it had hit a low of 54.81.

The Reserve Bank of India fixed the reference rate for the dollar at 54.5413 and for the euro at 71.1075.

The rupee recovered against pound sterling to 84.32 from previous close of 84.44 and recouped against the euro to 71.14 from 71.26. It also bounced back against the Japanese yen to 53.89
per 100 yen from the overnight close of 54.92.
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