Rupee slides 77p to 2-month low of 63.24 per $ on trade data
12 Nov 2013 12:48 AM GMT
Sustained capital inflows could not stem the rupee's decline, a forex dealer said. It fell for the fourth straight day to end at the lowest level since 63.38 on 18 September.
At the interbank foreign exchange market, the rupee opened lower at 63 a dollar from the previous close of 62.47 and recovered to a high of 62.93.
However, it dropped to a low of 63.44 amid heavy dollar demand from importers, mainly oil refiners and weak equities.
The rupee closed at 63.24, a fall of 77 paise or 1.23 per cent. In four sessions, it has slumped 162 paise.
'Friday's upbeat NFP (non-farm payrolls) report from the US...led to further strength in the US dollar, thereby making the rupee to depreciate against the dollar,' said Abhishek Goenka, CEO of India Forex Advisors.
'Shares fell for a fifth consecutive day to trade near a one-month low after better-than-expected US jobs data revived concerns that the Federal Reserve would start tapering its monetary stimulus as early as this year. Taking cues from this, the rupee depreciated,' said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).
'Overall, global demand is improving, but higher imports (of oil, gold and others) have led to the deterioration in the trade deficit. The rise in imports is due to seasonality, as imports tend to rise ahead of the festival season,' Sonal Varma of Nomura said.
At the interbank foreign exchange market, the rupee opened lower at 63 a dollar from the previous close of 62.47 and recovered to a high of 62.93.
However, it dropped to a low of 63.44 amid heavy dollar demand from importers, mainly oil refiners and weak equities.
The rupee closed at 63.24, a fall of 77 paise or 1.23 per cent. In four sessions, it has slumped 162 paise.
'Friday's upbeat NFP (non-farm payrolls) report from the US...led to further strength in the US dollar, thereby making the rupee to depreciate against the dollar,' said Abhishek Goenka, CEO of India Forex Advisors.
'Shares fell for a fifth consecutive day to trade near a one-month low after better-than-expected US jobs data revived concerns that the Federal Reserve would start tapering its monetary stimulus as early as this year. Taking cues from this, the rupee depreciated,' said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).
'Overall, global demand is improving, but higher imports (of oil, gold and others) have led to the deterioration in the trade deficit. The rise in imports is due to seasonality, as imports tend to rise ahead of the festival season,' Sonal Varma of Nomura said.
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