Rupee breaches 63-mark against dollar, ends 47 paise down at 62.97 on weak stocks
The rupee appreciated by seven paise to 62.43 against the US dollar in early trade today at the Interbank Foreign Exchange on fresh selling of the American currency by exporters and banks.business Updated: Mar 13, 2015 18:19 IST
The Indian rupee on Friday breached the the 63-mark intra day against the Greenback and ended with a sharp loss of 47 paise at 62.97 on sustained dollar demand from importers amid weakness in local shares. It crossed the 63-level after two months as it hit a low of 63.0025 on Friday.
Previously, it had logged an intra-trade low of 63.20 on January 8, 2015.
Besides dollar demand and weakness in share market, a firm dollar overseas also put pressure on the rupee, traders said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced slightly lower at 62.52 a dollar from overnight close of 62.50 and touched a high of 62.43.
Later, it surrendered early gains and plunged to a low of 63.0025 before ending at 62.97 -- a fall of 47 paise or 0.75%. On Thursday, it had gained 28 paise or 0.45%.
On a weekly basis, the rupee has tumbled by 81 paise or 1.30%. The benchmark S&P BSE Sensex on Friday reacted downwards by a whopping 427.11 points, or 1.48%.
Foreign Portfolio Investors (FPIs) picked up shares worth Rs 733.09 crore on Thursday, as per provisional data.
Stocks saw massive selling after rise in retail inflation in February hit investors' hopes of aggressive rate cuts.
The dollar index, a gauge of six major global rivals, was up by 0.30%. Pramit Brahmbhatt, Veracity Group, CEO said: "Rupee traded weak and depreciated almost fifty paise taking cues from weak local equities.
Also, fresh buying of the dollar by exporters and banks further dented the rupee. The trading range for the spot rupee is expected to be within 62.50 to 63.50." Some have suggested that the RBI intervened in forex markets on Friday.
"The Reserve Bank of India apparently bought dollars in the spot market and may have picked up close to $800 million through intervention in the spot foreign exchange market on Friday...weekly RBI reserves data will be released today evening," said Suresh Nair, Director, Admisi Forex India.