Thursday, July 30, 2009

Rupee Fall Down 21 Paise, Split Ends At 48.30 - July 30, 2009

The rupee on Wednesday tumbled by 21 paisa against the US dollar amid expectations of fresh capital outflows and month end dollar demand due to the weakness in the local equity markets. In active trade at Interbank Foreign Exchange market, the rupee resumed lower at 48.30/31 per dollar as against its previous close of 48.20/21 a dollar. Reflecting a steep decline in the local equity markets, the domestic currency later hit a low of 48.52.

The BSE Sensex was down by a whopping nearly 444 points in late morning deals after China''s stock dipped most in eight months on concerns over the prospects of earnings growth.

However, at a later stage, it recovered to close lower by 158.48 points. Tracking this, the rupee also bounced back to close at 48.41/42. It touched a high of 48.26 a dollar.

However, the Reserve Bank of India (RBI) fixed the reference rate for the US dollar at Rs 48.47 while for the euro at Rs 68.45.

The rupee premiums on the forward dollar closed steady to slightly better on stray paying pressure from corporates and banks.

The benchmark six-month forward dollar premium payable in December closed hardly changed at 46-1/2-48-1/2 paise from 46-48 paise on Tuesday and the far-forwards maturing in June also shot up to 96-1/2 to 98-1/2 paise from 96-98 paise previously.

However, the rupee remained weak against the Japanese yen. The rupee shot up against the pound to close at Rs 79.22/24 from Rs 79.58/60 but it strengthened against the euro to Rs 68.34/36 from Rs 68.72/74.

Further, it eased against the Japanese yen to Rs 50.93/95 per 100 yen from Rs 50.84/86 previously.

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