Re dips for 6th day, Sensex snaps 4-day fall
23 Aug 2013 11:05 PM GMT
The rupee remained in the doldrums for the sixth session in a row on Thursday as it breached the 65 mark to an all-time intra-day low of 65.56 before recovering to settle at 64.55 against the dollar, still down 44 paise.
Even as local stocks recovered, the rupee's declined on dollar sales by exporters and capital outflows. Steps taken by the Reserve Bank and the government to curb volatility in the exchange rate appeared to have had little effect.
The dollar strengthened overseas after minutes showed the U.S. central bank remains on course to start trimming its stimulus before the year end. The dollar index, consisting of six major global currencies, was up 0.32 per cent.
At the interbank foreign exchange market, the rupee resumed weaker at 64.85 a dollar from the previous close of 64.11 and crossed the 65 mark to a historic low of 65.56. It recovered some ground and ended at 64.55, still a fall of 44 paise or 0.69 per cent. In six straight sessions, the rupee has tanked by 336 paise or 5.49 per cent.
'A set of RBI and government measures have not helped the rupee to witness a recovery,' said Abhishek Goenka, CEO of India Forex Advisors. 'The FOMC minutes, which gave a signal of tapering this year, further added pressure on the sinking rupee as the US dollar recovered in the international market.'
'The trading range for rupee is expected within 64.10-65.10,' said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).
Even as local stocks recovered, the rupee's declined on dollar sales by exporters and capital outflows. Steps taken by the Reserve Bank and the government to curb volatility in the exchange rate appeared to have had little effect.
The dollar strengthened overseas after minutes showed the U.S. central bank remains on course to start trimming its stimulus before the year end. The dollar index, consisting of six major global currencies, was up 0.32 per cent.
At the interbank foreign exchange market, the rupee resumed weaker at 64.85 a dollar from the previous close of 64.11 and crossed the 65 mark to a historic low of 65.56. It recovered some ground and ended at 64.55, still a fall of 44 paise or 0.69 per cent. In six straight sessions, the rupee has tanked by 336 paise or 5.49 per cent.
'A set of RBI and government measures have not helped the rupee to witness a recovery,' said Abhishek Goenka, CEO of India Forex Advisors. 'The FOMC minutes, which gave a signal of tapering this year, further added pressure on the sinking rupee as the US dollar recovered in the international market.'
'The trading range for rupee is expected within 64.10-65.10,' said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).
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