Wednesday, July 22, 2009

Rupee Cataract During Tandem With Equity Markets - July 22, 2009

In line with the local stock market, the Indian rupee fell by 22 paise against the dollar on July 21, on the back of importers'' demand for the US currency. Most of the Asian currencies were also weaker against the dollar, that impacting rupee sentiment.

On the Interbank Foreign Exchange market, the rupee opened slightly lower at 48.25/26 against previous day close of 48.20/21 and fell further in sync with equity markets to close the day at 48.42/44. The rupee moved in a range of 48.24 and 48.46 per dollar.

The Indian benchmark Sensex ended lower by 128.52 points or 0.85 per cent. Asian indices ended mixed while European markets resumed better yesterday.

However, the Reserve Bank of India (RBI) fixed the reference rate for the US dollar at Rs 48.27 and for the euro at Rs 68.54.

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