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`Rs plunges by 38p to close at 7-week low of 61.34 per $

Showing weakness for the fourth day in a row, the rupee on Thursday crashed by 38 paise — loging biggest fall in nearly two-week — to end at 7-week low of 61.34 against the Greenback following host of negative factors. Turmoil was seen in local equities for the straight three days, withdrawal
by foreign funds from stocks, sustained month -end dollar demand from importers, mainly oil refiners, and sharp rise in dollar value overseas all weighed on the rupee.

At the Interbank Foreign Exchange (Forex) market, the local unit commenced slightly better at 60.94, which was also the day’s high, from previous close of 60.96, but later it continued its downslide in line with weakness in stocks and touched a low of 61.4150 — a level not seen since August 8, 2014 when it had registered intra-day low of 61.74.

Finally, it settled at 61.34, showing a steep fall of 38 paise or 0.62 pct. In four days in a row, it has stumbled by 86 paise or 1.41 pct. The Indian benchmark S&P BSE Sensex today plunged by 276.33 points or 1.03 pct to 1-month low while FPIs/FIIs sold shares worth USD 112.91 mln yesterday, as per Sebi data. The dollar index was up by 0.37 pct against basket of six major global currencies after US housing data showed strong surge.

Pramit Brahmbhatt, Veracity Group CEO said, ‘The rupee traded weak today taking cues from strong dollar as it continues to quote positively mainly after the new home sales in the US rose to its highest level in more than 6 years. Also the month end dollar demand from oil importers forced Rupee to depreciate over half percent for the day.’

In the forward market, premium remained weak on consistent receipts by exporters. The benchmark six-month premium payable in February dipped to 210.5-212.5 paise from last close of 215.5-216.5 paise and far-forward contracts maturing in August, 2015 also dropped to 466-468 paise from 471.5-472.5.
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