Rupee Dips Through 15 Paise To 50.45 Dollar - April 22, 2009

The rupee on April 21 closed at 50.45/47 against the dollar, cheaper by 15 paise from its previous close. The rupee resumed weak at 50.50/52 a dollar against its earlier close of 50.30/31 a dollar and later moved in a range of 50.24 and 50.62.

The dealers at the Interbank Foreign Exchange (forex) market said the strengthening of dollar overseas as well as fears of a slowdown in capital inflows and the buying of dollars from the oil refiners for their monthly import also weighed on rupee sentiment.

RBI in its annual monetary policy on Tuesday reduced the short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points, paving the way for further lending rates cut by banks for retail and industrial borrowers.

The Reserve Bank of India fixed the reference rate for the US dollar at Rs 50.36 and for the euro at Rs 65.08. The benchmark six-month forward dollar premium payable in September closed at 62-1/2-64-1/2, down from 65-67 paise on Monday and the far-forwards maturing in March also closed lower at 102-104 paise from 104-106 paise previously.

Rupee Dips By 20 Paise Against US Dollar - June 4, 2008

The rupee lost 20 paise at 42.60/61 against the greenback on June 3 on sustained pull-out by foreign funds from equity markets and on some dollar buying by importers. At the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 42.45/47 a dollar from Monday''s close of 42.40/41. The domestic unit moved down further to a low of 42.64 before concluding the day at 42.60/61.

Forex dealers said fears of further rise in inflation on imminent fuel price hike pushed the rupee downwards.Foreign Institutional Investors (FIIs,) the main driving force behind the rupee''s rally in the last year, remained net sellers in last couple of weeks and they pulled out over $3.5 billion in this calender year so far, ultimately putting pressure on the rupee. Dealers also attributed fall in the rupee to weak Asian markets. Most of the Asian indices were down by 0.6 per cent to 1.8 per cent.