Rupee snaps 5-week gains, closes at 52.81 Vs US dollar
Mumbai: In tandem with fall in local equities amid likely downgradation of India's sovereign credit rating by global rating agency Standard and Poor's (S&P), the rupee snapped its five week of gaining string, dipping by 96 paise to close at 52.81 against the Greenback during the week under review.
Fresh dollar demand from importers amid late weakness in dollar overseas also put pressure on the rupee while sustained capital inflows restricted the fall to some extent.
The rupee depreciated four out of five trading days in the week.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced the week lower at 52.12 a dollar as against last weekend's level of 51.85 and dropped by 79 paise or 1.52 percent on Monday itself to log the second biggest fall in 2012. Previously, it had plunged by 85 paise or 1.51 percent on June 22 when it had settled at an all-time low of 57.15.
Later, it continued to moved down to a low of 53.18 before concluding the week at 52.81, showing a fall of 96 paise or 1.85 percent. In last five weeks of gaining streak, it had spurted by 367 paise or 6.61 percent. On Monday, it had touched a high of 51.97.
The Indian benchmark sensex also broke its 5-week of rally and ended lower by over 263 points or 1.39 percent.
Forex dealers said that the rupee saw wome pressure after International Monetary Fund (IMF) slashed its growth forecast for India for 2012 to 4.9 pct from 6.2 percent earlier.
The sentiment worsen further after the S&P threatened to downgrade India's sovereign credit rating to junk grade within two years.