US-backed speculators launch new Re attack with vengeance
31 July 2013 11:27 PM GMT
RBI's growth concerns, month-end dollar demand from importers and outward remittance from corporates dragged down the rupee by a whopping 106 paise to three-week low of 60.47, wiping out all the gains notched up on central bank's recent liquidity tightening steps.
The steep fall in rupee came on a day when the Reserve Bank of India (RBI) in its first quarter review of monetary policy kept the all key rates unchanged but cut the GDP growth forecast to 5.5 per cent for FY'14 from 5.7 per cent earlier.
At the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 59.62 a dollar from previous close of 59.41. It tried to recover to a high of 59.52 only to fall back to a low of 60.55 after the RBI policy trickled in.
Rupee later closed at 60.47, showing a fall of 106 paise — the biggest fall in last one month -- or 1.78 per cent.'There was some position cutting at 59.70-75 levels. A huge outward remittance from a corporate was also seen which kept rupee under pressure. Beyond 60 levels, panic buying from importers started,' said a chief dealer with a PSU bank.
RBI had come out with a series of steps, including those to drain excess cash from the financial system, after rupee plunged to all-time low of 61.21 on 8 July. On Monday, rupee had closed at 59.41.RBI's dovish view on the coming quarters and lowering of GDP forecast also weighed on rupee. Investors are concerned about the recent the liquidity measures which the central bank today said will only be withdrawn once rupee stabilizes, said a senior treasury official at another state-owned bank. The dollar index was up by 0.03 per cent against its major rivals ahead of US Federal Reserve's policy meeting starting later in the day.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, ‘Today Rupee futures depreciated by almost 2 per cent and was traded over 60.50 levels in spot, as local equities closed down by 1.25 per cent which weakened Rupee further. Also the month end dollar demand from importers helped dollar to trade strong against the Rupee.’
‘As expected RBI kept the rates unchanged to support the currency, which fell to a record low this month. Now looking at the present scenario Rupee is expected to breach the all time low level of 61.21 logged on 8 July, 2013 in coming days,’ he added.
‘Rupee was seen hitting its three week low against the US dollar today. It started depreciating after the RBI gave some
negative comments about the economic growth. RBI comments have wiped out the gains posted by rupee in earlier two weeks when it had announced liquidity tightening measures,’ said India Forex Advisors Founder & CEO Abhishek Goenka.
The steep fall in rupee came on a day when the Reserve Bank of India (RBI) in its first quarter review of monetary policy kept the all key rates unchanged but cut the GDP growth forecast to 5.5 per cent for FY'14 from 5.7 per cent earlier.
At the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 59.62 a dollar from previous close of 59.41. It tried to recover to a high of 59.52 only to fall back to a low of 60.55 after the RBI policy trickled in.
Rupee later closed at 60.47, showing a fall of 106 paise — the biggest fall in last one month -- or 1.78 per cent.'There was some position cutting at 59.70-75 levels. A huge outward remittance from a corporate was also seen which kept rupee under pressure. Beyond 60 levels, panic buying from importers started,' said a chief dealer with a PSU bank.
RBI had come out with a series of steps, including those to drain excess cash from the financial system, after rupee plunged to all-time low of 61.21 on 8 July. On Monday, rupee had closed at 59.41.RBI's dovish view on the coming quarters and lowering of GDP forecast also weighed on rupee. Investors are concerned about the recent the liquidity measures which the central bank today said will only be withdrawn once rupee stabilizes, said a senior treasury official at another state-owned bank. The dollar index was up by 0.03 per cent against its major rivals ahead of US Federal Reserve's policy meeting starting later in the day.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, ‘Today Rupee futures depreciated by almost 2 per cent and was traded over 60.50 levels in spot, as local equities closed down by 1.25 per cent which weakened Rupee further. Also the month end dollar demand from importers helped dollar to trade strong against the Rupee.’
‘As expected RBI kept the rates unchanged to support the currency, which fell to a record low this month. Now looking at the present scenario Rupee is expected to breach the all time low level of 61.21 logged on 8 July, 2013 in coming days,’ he added.
‘Rupee was seen hitting its three week low against the US dollar today. It started depreciating after the RBI gave some
negative comments about the economic growth. RBI comments have wiped out the gains posted by rupee in earlier two weeks when it had announced liquidity tightening measures,’ said India Forex Advisors Founder & CEO Abhishek Goenka.
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