Millennium Post

Relentless FII onslaught mauls Re by 55p more to 60.21 per $

Continuing its downslide for the third straight day, the Indian rupee plunged by 55 paise to close below 60-mark at 60.21 against the Greenback on sluggish local equities amid sustained dollar demand from importers, despite weak USD overseas.

Selling by foreign funds in equity markets too impacted negatively on the market.

The rupee commenced lower at 59.87 a dollar from previous close of 59.66 and immediately touched a high of 59.84 at the Interbank Foreign Exchange (Forex) market.

It, later, turned negative and tumbled to a low of 60.39 before concluding at 60.21, showing a fall of 55 paise or 0.92 per cent. In three days, it has slumped by 82 paise or 1.38 per cent Previously, it had registered closing all-time low of 60.72 and also an intra-day historic low of 60.76 on 26 June, 2013.

Heavy dollar buying by importers, mainly oil refiners, following sharp rise in global crude oil prices weighed on the rupee. New York's main contract, crude oil for delivery in August, was up $2.20 to $101.80 a barrel.

The dollar index was down by about 0.20 per cent against a basket of six major currencies.N S Venkatesh Treasury Head of IDBI Bank said:’ Rupee depreciated today as dollar strengthened against all major currencies. Also, equity market performance put some pressure on the domestic currency. However, we saw some selling of dollars from exporters and foreign banks.’
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