Tuesday, June 23, 2009

Rupee Split Ends By The Side Of One-Month Low - June 23, 2009

The rupee closed at more than a one month low at 48.60/61 against the dollar due to persistent capital outflows on the back of weak equity markets coupled with a stronger US currency in overseas markets. At the Interbank Foreign Exchange (Forex) market, the rupee resumed lower at Rs 48.13/14 per dollar and dropped further to close at Rs 48.60/61 as against last weekend''s level of Rs 48.08/09, showing a net loss of 52 paise.

The rupee during the day hovered in a range of 48.66 per dollar and 48.13 per dollar. The Reserve Bank of India fixed the reference rate for the US dollar at Rs 48.39 while for the euro at Rs 67.09.

The rupee premiums on the forward dollar closed lower. The benchmark six-month forward dollar premium payable in November closed at 59-61 paise, down from 60-1/2-62-1/2 paise on last Friday and the far-forwards maturing in May also finished lower at 110-112 paise as against 111-1/2-113-1/2 paise previously.

In cross-currency trade, the rupee continued to fall against the pound sterling to close at Rs 79.84/86 as against last weekend''s level of 79.00/02 and it reacted downwards against the euro to Rs 67.27/29 from its previous closing level of Rs 66.98/67.00 per euro.

Moreover, it also fell against the Japanese yen to Rs 50.67/69 per 100 yen from the last week''s level of Rs 49.66/68 per 100 yen.

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