Recovering part of initial losses, rupee on May 20 ended lower by six paise to 42.60/61 against dollar following weak Asian equity markets. In quiet trade at the Interbank Foreign Exchange (Forex) market, the domestic unit opened lower at 42.59/61 a dollar and dropped further to a loof 42.74 before recovering to end the day at 42.60/61, a loss of 6 paise over the previous close.
Sluggishness in Asian equity markets, including India, weighed upon the rupee sentiment.The BSE benchmark index, Sensex, was down by nearly 205 points at close on May 20. Expectations of slow-down in capital inflows due to high inflation and oil prices surging above $127 a barrel also have a negative impact on rupee sentiment, traders said.Inflation has risen to 7.83 per cent for the week ended May 3, 2008, mainly due to increase in prices of essential food items and some manufactured products.The Reserve Bank of India on Tuesday fixed the reference rate for dollar at Rs 42.67 and that for single European unit at Rs 66.39.Rupee premiums on forward dollar recovered smartly and ended higher on fresh paying pressure from banks and corporates.The benchmark six-month forward dollar premiums payable in October ended at 29-1/2 - 31 paise, higher from 23- 24 paise on Friday and the far-forward maturing in April also rose to 47 - 49 paise from 41 - 43 paise previously.
In cross currency trades, rupee reacted downwards against the British sterling, euro and the Japanese yen.Rupee fell back sharply against the pound sterling to end the day at Rs 83.66/68 per pound from previous close of Rs 82.87/89 per pound and also dropped against the single European currency to Rs 66.66/68 per euro from last close of Rs 65.84/86 per euro.The Indian unit too declined against the Japanese yen to close at 40.95/97 per 100 yen from overnight close of Rs 40.61/63 per 100 yen.
Sluggishness in Asian equity markets, including India, weighed upon the rupee sentiment.The BSE benchmark index, Sensex, was down by nearly 205 points at close on May 20. Expectations of slow-down in capital inflows due to high inflation and oil prices surging above $127 a barrel also have a negative impact on rupee sentiment, traders said.Inflation has risen to 7.83 per cent for the week ended May 3, 2008, mainly due to increase in prices of essential food items and some manufactured products.The Reserve Bank of India on Tuesday fixed the reference rate for dollar at Rs 42.67 and that for single European unit at Rs 66.39.Rupee premiums on forward dollar recovered smartly and ended higher on fresh paying pressure from banks and corporates.The benchmark six-month forward dollar premiums payable in October ended at 29-1/2 - 31 paise, higher from 23- 24 paise on Friday and the far-forward maturing in April also rose to 47 - 49 paise from 41 - 43 paise previously.
In cross currency trades, rupee reacted downwards against the British sterling, euro and the Japanese yen.Rupee fell back sharply against the pound sterling to end the day at Rs 83.66/68 per pound from previous close of Rs 82.87/89 per pound and also dropped against the single European currency to Rs 66.66/68 per euro from last close of Rs 65.84/86 per euro.The Indian unit too declined against the Japanese yen to close at 40.95/97 per 100 yen from overnight close of Rs 40.61/63 per 100 yen.
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