Rupee declines by 42 paise vs dollar; ends at over 3-month low
The rupee today lost a hefty 42 paise to close at three-and-a-half-month low of 52.50/51 against the American currency on strong dollar demand from banks and importers amidst a sharp fall in equity markets.business Updated: Apr 23, 2012 22:23 IST
The rupee on Monday lost a hefty 42 paise to close at three-and-a-half-month low of 52.50/51 against the American currency on strong dollar demand from banks and importers amidst a sharp fall in equity markets.
The rupee resumed marginally lower at 52.09/10 per dollar and hovered in the range of 52 and Rs. 52.58 against the dollar during the day. It closed at 52.50/51, lower by 42 paise from its previous close.
The last time local unit had ended at this level was on January 9, 2012.
Fresh demand for the American currency from banks and importers due to higher dollar in the overseas market mainly affected the rupee's value against the dollar.
The dollar index was up by 0.27% in European market, while New York crude oil was trading above USD 103.07 a barrel.
India Forex Advisors CEO Abhishek Goenka said, "The key reason behind the weakness in rupee during the day was pick-up in purchases by the domestic oil importers."
In Sydney, the dollar index reclaimed some lost ground in the early trade, while in London, the euro retreated from two-week highs against the dollar.
Alpari Financial Services (India) CEO Pramit Brahmbhatt said, "The rupee weakened to over 15-week low on rising US dollar and falling equity markets."
Meanwhile, the BSE benchmark Sensex tumbled by 277 points to 17,096.68.
Overall weakness was marked in all the Asian currencies on account of a series of weak economic data from the region.
Euro also fell against the US dollar on concerns that the ongoing French elections might disrupt the efforts to contain the debt crisis. Even the German Manufacturing PMI data released today was poor, adding to the weakness in Euro.
The rupee premium for the forward dollar ended higher on sustained paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in September closed higher at 161-163 paise from last weekend's level of 159-161 paise and far-forward contracts maturing in March also finished up at 301-303 paise from 295-297 paise.
The RBI fixed the reference rate for the US dollar at 52.2295 and for euro at 68.8375.
The rupee remained weak at 84.48/50 against the pound sterling from last Friday's close of 83.97/99 and moved down further against the euro to 68.96/98 from 68.85/87.
It, also dropped against the Japanese yen to 64.77/79 per 100 yen from last close of 63.87/89.