Rupee settles at one-month low of 54.22 Vs dollar
Mumbai: The Indian rupee tumbled by another 72 paise to settle the week at one-month low of 54.22 against the Greenback following weakness in the local equities amid sustained dollar demand from importers and some banks, mainly oil refiners.
Heavy foreign fund inflow in equities, however, made a feeble attempt to restrict the rupee fall, a dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced weak at USD 53.65 from last weekend's close of 53.50.
Later, it moved in a range of 53.55 and 54.24 before concluding the week at one-month low of 54.22, showing a fall of 72 paise or 1.35 percent. This was the lowest closing since 54.39 on January 17.
Sustained dollar demand from importers on the back of weakness in the local markets mainly affected the rupee value against the dollar, a forex dealer said.
Growth in industrial output contracted by 0.6 percent in December mainly due to muted activities in manufacturing and mining sectors. Retail inflation remained in double digits at 10.79 percent in January, driven by higher prices of vegetables, edible oil, cereals and protein-based items.
However, WPI inflation dropped to a three-year low of 6.62 percent in January but the data failed to spur rate cut hopes.
The Indian benchmark sensex closed with week lower by 26.62 points or 0.14 percent also put pressure on the rupee.
The 30-issue index has lost 635.38 points, or 3.16 percent, in the last three weeks.
The RBI fixed the reference rate for US dollar and euro at 53.9885 and 72.0865 from 53.5695 and 71.7850, respectively, last weekend.
The rupee premium for the forward dollar declined further on sustained receiving by exporters.
The benchmark six-month forward dollar payable in July finished down at 173-1/2-175-1/2 paise from last weekend's level of 179-1/2-180-1/2 paise and far-forward contract maturing in January also ended lower at 337-339 paise from 340-342 paise last weekend.
The rupee recovered against Pound Sterling to end the week at 83.97 from preceding weekend's level of 84.31, while fell back sharply against the Euro to close at 72.25 from previous weekend's level of 71.75.
However, it also remained weak against the Japanese Yen to finish at 58.50 per 100 yen from last weekend's level of 57.93.