Rupee at 1-month low, slides 44 paise to 54.87 against dollar
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Rupee at 1-month low, slides 44 paise to 54.87 against dollar

Last Updated: Thursday, April 04, 2013, 19:43
 
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Rupee at 1-month low, slides 44 paise to 54.87 against dollar
Mumbai: Tracking weak stock market, the rupee on Thursday extended its losing run to the second day by plunging 44 paise to one-month low of 54.87 on US dollar demand and heavy capital outflows.

At the Interbank Foreign Exchange (Forex) market here, the rupee commenced weak at 54.50 a dollar from previous close of 54.43 and immediately touched a high of 54.49.

With Indian stocks under pressure, the rupee tumbled to a low of 54.89 on emergence of dollar demand from importers and some banks on expectations of further rise in dollar overseas. It concluded at 54.87, a fall of 44 paise or 0.81 percent.

The dollar index was up by a whopping over 0.6 percent against a basket of six major rivals as the Japanese yen today dipped after the Bank of Japan lived up to expectations with a massive easing programme.

India remains dependent on debt related and short-term portfolio flows to bridge Current Account Deficit, said Anindya Banerjee, Currency Analyst, Kotak Securities.

Rupee could remain under pressure against the USD going forward, within a range of 54.50 and 55.30 on spot, he added.

"The rupee fell to its lowest level in almost a month amid volatile trade. The concerns on the capital inflows will leave the currency more vulnerable to a CAD. Also the capital flows into emerging markets may be diverted to the US as a recovery in world's largest economy is gathering momentum," said Abhishek Goenka, Founder and CEO, India Forex Advisors.

On Wednesday, FIIs sold stocks worth Rs 368 crore.

The Indian benchmark S&P BSE Sensex Thursday slumped by 291.94 points to end at more than four-month low of 18,509.70.

"Going ahead, if USDINR sustains above 54.60 levels for the next couple of days, then the pair should move towards 55.00-55.20 levels. The Sensex shed over whopping 500 points in past two trading sessions. Political uncertainty, ETF funds, FII selling and ever-worsening economic data were the key triggers for the downfall. A sharp sell-off by FIIs can drag the market to lower levels ahead," Goenka added.

Meanwhile, the premium for the forward dollar remained weak on sustained receipts by exporters.

The benchmark six-month forward dollar premium payable in September ended slightly lower at 191-193 paise from previous close of 193-194-1/2 paise.

Far-forward contracts maturing in March also eased to 363-365 paise from 364-365-1/2 paise.

The RBI fixed the reference rate for the US dollar at 54.6460 and for euro at 70.0795.

The rupee fell back against the pound sterling to 82.72 from last close of 82.25 while remained weak against the euro to 70.22 from 69.76.

It, however, bounced back against the Japanese yen to 57.47 per 100 yen from previous close of 58.23.

PTI


First Published: Thursday, April 04, 2013, 19:43


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