Rupee Ends At 39.77 Against Dollar

The rupee on October 18 closed at a nearly three-week low of 39.77/78 against the US currency, cheaper by about 23 paise from previous close of 39.5450/5500, following a steep slide in equity market.In volatile trade at the Interbank Foreign Exchange (forex) market, the local currency moved in a range of 39.39 and 39.80 after resuming firm at 39.46/48 a dollar.

The Indian unit''s movements continued to be influenced by a high level of volatility in equity markets, which swung in a range of 1,427 points before ending with a huge loss of 717 points. The market regulator SEBI''s proposal to limit FII inflows into equity had adverse impact on the rupee sentiment. Foreign Institutional Investors (FIIs) turned net sellers and pulled out about $500 million from equity, according to provisional figures. The rupee had appreciated sharply against dollar by more than 12 per cent so far this year.Attributing initial rupee firmness to the benchmark Sensex''s smart rally to an all-time high of 19,198.66 in morning trading, dealers said hedge funds were believed to have made massive withdrawals in equity during the day.