Rs. down 37 paise to 1 wk-low on $ demand, FII outflows
The rupee today depreciated by a hefty 37 paise to close at nearly one-week low of 54.38 on fresh dollar demand from importers and capital outflows from the stock market, amid political uncertainty.business Updated: Sep 20, 2012 18:38 IST
The rupee on Thursday depreciated by a hefty 37 paise to close at nearly one-week low of 54.38 on fresh dollar demand from importers and capital outflows from the stock market, amid political uncertainty.
The rupee commenced remarkably lower at 54.30 a dollar at the Interbank Foreign Exchange (Forex) market as against last close of 54.01.
It moved in a narrow range of 54.22 and 54.42 with little support as FIIs pulled out nearly Rs 80 crore from Indian stocks as per provisional data.
The rupee finally concluded near the day's lowest levels at 54.38, a fall of 37 paise or 0.59%.
Month-end dollar demand from importers, mainly oil refiners, and also some banks put pressure on the rupee, said forex dealers.
A firm dollar overseas also weighed on the rupee with the euro falling to a one-week low after reports of disappointing Eurozone business activity data earlier on Thursday, said traders.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, "The rupee finished with losses amidst gains in dollar index on risk aversion in global markets. The ongoing political rift between government and its strongest ally has also weighed on rupee."
The dollar index, a gauge of six major global rivals, was up by 0.49% after lacklustre Chinese manufacturing data and downbeat Eurozone purchasing managers' index (PMI).
New York crude oil was quoting below US$ 92 a barrel in European market today.
The Indian stock market benchmark Sensex on Thursday dropped further by 146.76 points, or 0.79 per cent, to a one-week low amid the government's main ally Trinamool Congress appearing all set to break its ties with UPA coalition by withdrawing its ministers and the support tomorrow over issues like FDI in retail.