Rupee At 39.39 Against US Dollar

The rupee on November 21 ended three paise weaker at 39.39/40 against the US currency due to a meltdown in equity markets amid fears of capital outflows and weak dollar overseas. In fairly active trade at the Interbank Foreign Exchange (forex) market, the local currency traded in a range of 39.35 and 39.42 after resuming steady at 39.36/37 against a dollar from overnight close.

Equity markets continued to influence the rupee movements throughout as the benchmark Sensex gradually moved downwards after opening weak and ended with a hefty fall of 678 points.

Oil prices came within striking distance of the $100 psychologically crucial level during early Asian trade. Meanwhile, traders anticipated good dollar demand from oil corporates in the near future as the crude prices moved to a new record high, commented a dealer.Traders also expected continued capital outflow for the short term. Foreign portfolio investments was the principal factor the rupee''s sharp surge so far in the year.

The Reserve Bank of India fixed the reference rate for the US currency at Rs 39.39 per dollar and for the single European unit at Rs 58.49 per Euro.The rupee premium on forward dollar ended slightly better on fresh paying pressure from banks and corporates. In cross-currency trades, the local currency recovered against the British sterling while declined against the Euro and the Japanese Yen.

The rupee recouped against the Sterling to finish the day at Rs 81.02/04 per pound from previous close of Rs 81.20/22 per pound while eased against the single European currency to Rs 58.25/27 per euro from overnight close of Rs 58.15/17 per euro.The Indian unit dropped sharply against the Japanese yen to close at Rs 36.30/32 per 100 Yen from last close of Rs 35.66/68 per 100 Yen.