Rupee completes 3-day slide to end week at 6-week low of 62.47 against $
9 Nov 2013 7:45 PM GMT
Continueing its downslide for the third day in a row, the rupee on Friday depreciated by six paise to close at an almost 6-week low of 62.47 following bearish local equities amid sustained dollar demand from importers. Almost flat dollar index overseas against major global rivals ahead of US jobs data could not give direction either side. The dollar index was up by 0.02 per cent but sustained capital inflows restricted the rupee fall to some extent.
At the Interbank Foreign Exchange (Forex) market, the local unit commenced sharply lower at 62.65 a dollar from last close of 62.41 and dropped further to a low of 62.75 on fall in domestic stocks amid heavy dollar demand from importers. Later, it recovered on late dollar selling by exporters and continued foreign funds inflows in equities to a high of 62.46 before closing at 62.47, still showing a fall of six paise or 0.10 per cent. In straight three days, it had plunged by 85 paise (1.38 per cent).
Pramit Brahmbhatt, CEO of Alpari Financial Services (India), said,’Today the rupee depreciated taking cues from the local equities which closed down. On a weekly basis the rupee has depreciated for the fourth week in a row and is expected to depreciate further in coming days due to the country’s external deficit and the impact of a possible tapering in the US Federal Reserve stimulus programme. The trading range for the spot dollar/ rupee pair is expected to be within 62.20 to 63.00.'
‘The rupee ended the session on a negative note against the US dollar. On the local front, negative stock markets and dollar demand from OMC?s who have started returning to the market kept the rupee under pressure. Technically, the dollar-rupee pair has come out of 61.00-62.00 range. If the pair holds well above 62.40 levels in the next week, then we can see it hitting 63 plus levels,’ said Abhishek Goenka, Founder and CEO of India Forex Advisors.
The forward dollar premiums ended firm on fresh paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in April moved up to 248-250 paise from Thursday’s close of 246-248 paise and far-forward contracts maturing in October rose further to 473-475 paise from 470-1/2-472-1/2 paise.
The RBI fixed the reference rate for the dollar at 62.7315 and for the euro at 84.0625. The rupee fell back to 100.45 against the pound from last close of 100.37 and also turned negative against the Japanese yen to end at 63.63 per 100 yen from 63.25. However, it shot up further to 83.86 per euro from 84.35.
At the Interbank Foreign Exchange (Forex) market, the local unit commenced sharply lower at 62.65 a dollar from last close of 62.41 and dropped further to a low of 62.75 on fall in domestic stocks amid heavy dollar demand from importers. Later, it recovered on late dollar selling by exporters and continued foreign funds inflows in equities to a high of 62.46 before closing at 62.47, still showing a fall of six paise or 0.10 per cent. In straight three days, it had plunged by 85 paise (1.38 per cent).
Pramit Brahmbhatt, CEO of Alpari Financial Services (India), said,’Today the rupee depreciated taking cues from the local equities which closed down. On a weekly basis the rupee has depreciated for the fourth week in a row and is expected to depreciate further in coming days due to the country’s external deficit and the impact of a possible tapering in the US Federal Reserve stimulus programme. The trading range for the spot dollar/ rupee pair is expected to be within 62.20 to 63.00.'
‘The rupee ended the session on a negative note against the US dollar. On the local front, negative stock markets and dollar demand from OMC?s who have started returning to the market kept the rupee under pressure. Technically, the dollar-rupee pair has come out of 61.00-62.00 range. If the pair holds well above 62.40 levels in the next week, then we can see it hitting 63 plus levels,’ said Abhishek Goenka, Founder and CEO of India Forex Advisors.
The forward dollar premiums ended firm on fresh paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in April moved up to 248-250 paise from Thursday’s close of 246-248 paise and far-forward contracts maturing in October rose further to 473-475 paise from 470-1/2-472-1/2 paise.
The RBI fixed the reference rate for the dollar at 62.7315 and for the euro at 84.0625. The rupee fell back to 100.45 against the pound from last close of 100.37 and also turned negative against the Japanese yen to end at 63.63 per 100 yen from 63.25. However, it shot up further to 83.86 per euro from 84.35.
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