Millennium Post
Business

No end to rupee woes, closes at 54.47

A day after closing at a record low of 54.50 against the dollar, the rupee on Thursday slid further to 54.60 intra-day as capital outflows continued but suspected the Reserve bank of India (RBI) intervention cushioned against a steeper fall and it closed at 54.47.

A positive close in Indian stocks and fresh dollar selling by exporters at higher levels also helped the rupee to remain somewhat stable near its overnight close, forex dealers said.

At the forex market, the domestic unit on Thursday resumed higher at 54.40 a dollar. However, fall in stocks amid dollar demand, later pushed the rupee to an all-time low of 54.60.

Dealers said a fall in the New York crude oil prices to nearly six-month low below $93 triggered a demand for dollars. RBI too believed to have intervened helping the domestic currency close at 54.47.

'Towards the end of the session, we saw some dollar selling by the central bank, which supported rupee,' said Viral Shah, head - Institutional Business, Geojit Comtrade.

'Unless Euro strengthens against dollar with credible solution of eurozone problems, especially Greece, rupee is less likely to appreciate,' Moses Harding, head - ALCO and Economic and market research, IndusInd Bank said.

The BSE benchmark Sensex was up by over 210 points in late morning trade and finally closed 40 points higher on Thursday.
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