| Date: |
10-12-2010 |
| Subject: |
Rupee depreciates by another 13 paise against dollar on weak equities Read more: Rupee depreciates |
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MUMBAI: The rupee today lost 13 paise to close at 45.21/22 against the US currency due to weak equity markets and concerns over increased capital outflows.
Recovery in dollar overseas amid sustained dollar demand from importers too put pressure on the rupee. The dollar index of six major currencies recovered its early losses and was quoted up by over 0.1 per cent in Europe today.
At the Interbank Foreign Exchange ( Forex) market, the domestic unit opened better at 45.00/01 a dollar from its previous close of 45.08/09 and immediately touched a high of 44.99.
Later, it fell back in line with steep fall in local stocks to the day's low of 45.3150 before recovering some ground to settle at 45.21/22. Yesterday, it had tumbled by 44 paise.
After resuming better, the Indian benchmark Sensex crashed by over 454 points, or 2.31 per cent, on rise in food inflation and Intelligence Bureau's reports of price rigging in few stocks.
Foreign Institutional Investors (FIIs), which pulled out USD 93.59 million on December 7, sold shares worth USD 287.63 million on the immediate day.
Dealers anticipated more capital outflows in the coming days due to sluggish equities and forthcoming Christmas holidays at the month-end.
Meanwhile, global crude oil was trading below USD 89 a barrel in London today.
The rupee premium for the forward dollar remained weak on sustained receivings by exporters. The benchmark six-month forward dollar premium payable in May closed down at 133-1/2- 135-1/2 paise from 137-139 paise on Wednesday.
Far-forward contracts maturing in November also finished lower at 230-232 paise from 235-236-1/2 paise previously.
The Reserve Bank of India has fixed the reference rate for the dollar at Rs 45.17 and the euro at Rs 60.04.
The rupee softened further to Rs 71.22/24 against the pound sterling from Wednesday's close of Rs 71.14/16 and also eased against the euro to Rs 59.73/75 from Rs 59.67/69 previously.
It, however, fell back against the yen to Rs 53.82/84 per 100 yen from its last close of Rs 53.77/79.
Source : timesofindia.indiatimes.com
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