Millennium Post

Re suffers biggest fall in a week, down 29p to 56.73 per $

After a day's respite, the rupee Wednesday fell by 29 paise, its biggest single day fall in a week, to end at 56.73 due to heavy dollar demand from importers amid renewed concerns over withdrawal of US monetary stimulus.
However, some capital inflows and recovery in local stocks cushioned rupee's fall to some extent, forex dealers said.

The local currency commenced the day higher at 56.43 a dollar from yesterday's close of 56.44 at the Interbank Foreign Exchange (Forex) market and immediately touched a high of 56.31 on early dollar selling by exporters.

But it later turned negative on fag-end dollar demand and dipped to a low of 56.70 before settling at 56.73, showing a fall of 29 paise, or 0.51 per cent. This is rupee's biggest fall since May 28, when it fell 39 paise against the dollar.
On Tuesday, it had risen by 32 paise, or 0.56 per cent, snapping a five-day losing run where it had lost 119 paise.
'Indian Equity markets traded low throughout the day which depreciated rupee by over 0.50 per cent taking cues from the concerns over the US Federal Reserve's decision about its Quantitative Easing Program (QE), but eventually managed to close in green,' Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said.'Also rupee futures crossed the 57 level for the fourth consecutive day. The trading range for the spot $/` pair is expected to be within 56.50 to 57.00,' he added.
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