Rs ends at 2-1/2 month low of 55.51 to $
25 Nov 2012 4:33 AM IST
The Indian rupee continued its downslide for the fourth consecutive day and tumbled by 30 paise to end below 55.50-mark after 2-1/2-month at 55.51 against the Greenback on continued dollar demand from importers and some banks amid weakness in local equities.
Adjournment of the Lok Sabha for the second day in a row of Winter session of Parliament over the FDI and other issues also weighed on the rupee.
However, sustained capital inflows and weak dollar overseas could not able to stem the rupee fall, a broker said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit opened a tad higher at 55.20 a dollar from last close of 55.21 and immediately touched a high of 55.18 on early rise in local equities. Later, it fell back sharply to a low of 55.61 on continued month-end dollar demand from importers, mainly oil refiners, and some banks put pressure on the rupee.
It closed at 55.51, a net loss of 30 paise or 0.54 pct. In four days of fall, it has plunged by 45 paise or 0.82 pct. Previously, it had settled at 55.66 on September 6, 2012. The Indian benchmark sensex on Friday declined by 10.77 points or 0.06 pct, snapping two-day gaining string while FIIs injected USD 33.13 mln as per Sebi data. The dollar index was down by 0.12 pct against a basket of six major rivals while New York crude oil was quoting above USD 87 a barrel in Europe on Friday.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,’The INR continued to weaken on political ruckus created in the parliament defying the positive sentiments of global markets due rising risk on. A subdued equity markets also supported for a lower cause which hit INR to over ten week lows.’
‘The uproar in parliament lead to adjournment of the house till Monday extended the weakness in INR. The euro extended its gains on better than expected economic numbers from Germany, creating downward pressure on the dollar index,’ he added.
‘The rupee ended to its two and a half month low as there were hopes of sustained dollar demand from oil refiners. The weakness in rupee was not supported by the dollar which was trading below 81.00 and the Euro surpassed the level of 1.2900. Still rupee did not see any signs of appreciation,’ said Abhishek Goenka, Founder and CEO, India Forex Advisors.
Adjournment of the Lok Sabha for the second day in a row of Winter session of Parliament over the FDI and other issues also weighed on the rupee.
However, sustained capital inflows and weak dollar overseas could not able to stem the rupee fall, a broker said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit opened a tad higher at 55.20 a dollar from last close of 55.21 and immediately touched a high of 55.18 on early rise in local equities. Later, it fell back sharply to a low of 55.61 on continued month-end dollar demand from importers, mainly oil refiners, and some banks put pressure on the rupee.
It closed at 55.51, a net loss of 30 paise or 0.54 pct. In four days of fall, it has plunged by 45 paise or 0.82 pct. Previously, it had settled at 55.66 on September 6, 2012. The Indian benchmark sensex on Friday declined by 10.77 points or 0.06 pct, snapping two-day gaining string while FIIs injected USD 33.13 mln as per Sebi data. The dollar index was down by 0.12 pct against a basket of six major rivals while New York crude oil was quoting above USD 87 a barrel in Europe on Friday.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,’The INR continued to weaken on political ruckus created in the parliament defying the positive sentiments of global markets due rising risk on. A subdued equity markets also supported for a lower cause which hit INR to over ten week lows.’
‘The uproar in parliament lead to adjournment of the house till Monday extended the weakness in INR. The euro extended its gains on better than expected economic numbers from Germany, creating downward pressure on the dollar index,’ he added.
‘The rupee ended to its two and a half month low as there were hopes of sustained dollar demand from oil refiners. The weakness in rupee was not supported by the dollar which was trading below 81.00 and the Euro surpassed the level of 1.2900. Still rupee did not see any signs of appreciation,’ said Abhishek Goenka, Founder and CEO, India Forex Advisors.
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