Foreign funds ravage Re by 194p to 66.24/$, bleed Sensex by 590 pts
29 Aug 2013 4:00 AM IST
Concerns over the passing of Food Bill in Lok Sabha on Monday amid sharp fall in local equities pulled the Indian rupee further down by a massive 194 paise -biggest fall in the history- to end below 66-mark first time at 66.24 against the Greenback.
Firm dollar overseas amid increased demand by foreign funds in stock markets too exacerbated the situation further.Dealers felt that the passage of the Food Security Bill in Lok Sabha would raise fears that the government might face more subsidy burden, leading to widening of the current account deficit, affecting the sentiment negatively.
Continued dollar demand from importers and some banks to meet their month-end requirements also put pressure on rupee.
Oil refinery companies were seen buying dollar on hopes of further rise in global oil prices after escalation of the Syrian crisis, which will affect the emerging markets.
At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed lower at 65 a dollar from previous close of 64.30 and remained in negative terrain throughout the day to log its life-time intra-day low of 66.30 before settling at 66.24, displaying a steep fall of 194 paise or 3.02 pct.
On Monday, it had tumbled by 110 paise or 1.74 pct and on 19 August, 2013, it had plunged by 148 paise or 2.40 pct.
The dollar index was quoting up by 0.1 pct against a basket of six major currencies. Pramit Brahmbhaat, CEO, Alpari Financial Services, (India) said,'Rupee dropped further by 3.0 per cent as on Monday, Lok Sabha gave green signal for $20-billion plan to provide cheap grain to the poor, which will further raise the fiscal deficit issue, taking cues from this local equities closed down over 3.0 per cent, denting the Rupee movement further. Expect spot Rupee to fall down further as dollar demand from oil importers will force Rupee to trade over the 66.50 level in coming days. The trading range for the same is expected to be within 65.00 to 67.00.'
'Excessive dollar demand continued to put pressure on the rupee. The heaviest fall in the domestic stock markets was also seen contributing to the fall in rupee. This month so far, rupee has plunged by almost 10 per cent against the US dollar.
The rupee is now the worst performing Asian currency as it has depreciated by more than 20 per cent this year so far,' said Abhishek Goenka, Founder and CEO, India Forex Advisors.
Forward dollar premiums improved further on sustained payments from banks and corporates.The benchmark six-month forward dollar premium payable in January rose to 238-1/2-243-1/2 paise from overnight close of 236-241 paise. Far-forward contracts maturing in July also firmed up to 459-464 paise from 451-456 paise.
Firm dollar overseas amid increased demand by foreign funds in stock markets too exacerbated the situation further.Dealers felt that the passage of the Food Security Bill in Lok Sabha would raise fears that the government might face more subsidy burden, leading to widening of the current account deficit, affecting the sentiment negatively.
Continued dollar demand from importers and some banks to meet their month-end requirements also put pressure on rupee.
Oil refinery companies were seen buying dollar on hopes of further rise in global oil prices after escalation of the Syrian crisis, which will affect the emerging markets.
At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed lower at 65 a dollar from previous close of 64.30 and remained in negative terrain throughout the day to log its life-time intra-day low of 66.30 before settling at 66.24, displaying a steep fall of 194 paise or 3.02 pct.
On Monday, it had tumbled by 110 paise or 1.74 pct and on 19 August, 2013, it had plunged by 148 paise or 2.40 pct.
The dollar index was quoting up by 0.1 pct against a basket of six major currencies. Pramit Brahmbhaat, CEO, Alpari Financial Services, (India) said,'Rupee dropped further by 3.0 per cent as on Monday, Lok Sabha gave green signal for $20-billion plan to provide cheap grain to the poor, which will further raise the fiscal deficit issue, taking cues from this local equities closed down over 3.0 per cent, denting the Rupee movement further. Expect spot Rupee to fall down further as dollar demand from oil importers will force Rupee to trade over the 66.50 level in coming days. The trading range for the same is expected to be within 65.00 to 67.00.'
'Excessive dollar demand continued to put pressure on the rupee. The heaviest fall in the domestic stock markets was also seen contributing to the fall in rupee. This month so far, rupee has plunged by almost 10 per cent against the US dollar.
The rupee is now the worst performing Asian currency as it has depreciated by more than 20 per cent this year so far,' said Abhishek Goenka, Founder and CEO, India Forex Advisors.
Forward dollar premiums improved further on sustained payments from banks and corporates.The benchmark six-month forward dollar premium payable in January rose to 238-1/2-243-1/2 paise from overnight close of 236-241 paise. Far-forward contracts maturing in July also firmed up to 459-464 paise from 451-456 paise.
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