HT Image
HT Image

Rupee falls to new one-month low

The drop was mainly due to sustained heavy dollar demand. With crude oil prices rising, the future for the time being is uncertain.
None | By Press Trust of India, Mumbai
UPDATED ON MAR 24, 2006 02:18 PM IST

The Rupee, on Friday, plummeted to a new one-month low against the US Dollar at Rs 44.6700/6750 per dollar.

The drop was mainly due to sustained heavy dollar demand. And with crude oil prices rising, the future, at least for the time being, is uncertain.

In yet another nervous session at the Interbank Foreign Exchange (Forex) market, the Rupee opened distinctly weak at 44.63/64 per dollar and tumbled to 44.6700/6750 per dollar in late morning deals, sharply lower from Thursday's close of 44.54/55 per dollar.

With Friday's 13-paise decline, the Rupee has depreciated by over 25 paise in the fourth trading session, pulled down by persistent heavy dollar demand from banks and corporates amid a resurgent dollar overseas.

A global strong dollar continued to generate sustained heavy dollar demand and kept the Rupee under severe pressure, despite steady FII inflows into the equity market, a Forex dealer said.

Flaring crude oil prices at US$63.88 a barrel also weighed on the Rupee value.

Foreign Institutional Investors (FIIs) infused a whopping USD 67.80 million into equity markets on March 22 after injecting around USD 75 million in the previous two days.

In Cross Currency trade, the Euro was quoted at Rs 53.45/48, Pound Sterling at Rs 77.48/51 and Japanese Yen (100) at Rs 37.86/89.

Story Saved