Rupee Tumbles By 65 Paise To A Two-Week Low - July 07, 2009

The forex market even did not from the post-Budget weak stock market sentiments on July 6, with the rupee falling 1.4%-its biggest one-day drop in three months-after the government projected a higher-than-expected fiscal deficit target. The finance minister told on July 6 that the fiscal deficit of the government for the current fiscal is likely to go up to 6.8% as against 6.2% in the last year.

The partially convertible rupee closed at 48.56/59 per dollar, which is its lowest close in over a week.

The rupee fell as far as 48.57 during trade, which is its lowest since June 25. The loss was the biggest since it shed 1.5% on March 2, a day before it hit an all-time low of 52.2.

Rupee Declined Slightly

The rupee declined slightly against the greenback as corporates bought dollars. The domestic currency opened at 42.74-75 and touched an intra-day low of 42.91-92. It closed the day at 42.78-79, against the previous close at 42.74. In the forward premia market, the six-month closed at 2.57 per cent (2.46 per cent) and the 12-month ended at 1.88 per cent (1.80 per cent).

Rupee Fell Against The Greenback

The rupee fell against the greenback on month end dollar demand from importers. The domestic currency opened at 42.80/82 and reached a low of 42.97/ 98. It then bounced back to 42.89/90 but finally ended the day at 42.96/97. The currency had closed at 42.72/73 on May 26. In the forward premia market, the 6-month closed at 2.37 per cent and the 12-month ended at 1.75 per cent.

Rupee Fell To 42.95/96 A US Dollar

The rupee on May 22 fell by 12 paise to 42.95/96 a US dollar, recovering somewhat from below 43 level it reached during the day, on fears that erupted after crude oil rose to a record. Global crude oil prices spiralled to a new record high of above $135 a barrel, raising worries of further upward pressure on inflation.

In a two-way trade at the Interbank Foreign Exchange (Forex), the local currency resumed sharply lower at 43.06/07 and dipped further to a low of 43.20, the level not seen since first week of April, 2007. Month-end dollar demand from oil refiners and importers also weighed on the rupee sentiment.

But, it recovered later to end at 42.95/96 a dollar, still lower from overnight closing level of 42.83/84. Dealers attributed late recovery in the rupee to some dollar selling by exporters, who took the opportunity to book profits at higher level.

Indian Rupee On May 6 Fell By 34 Paise

Beating expectations, the Indian rupee on May 6 fell by 34 paise to eight-month low at 40.94/95 against the greenback on as global crude prices hit a new record high, sending oil companies to rush for US currency amidst its short supply.

In brisk trade at the Interbank Foreign Exchange market, the local currency resumed weak at 40.67/68 a dollar from its last close of 40.60/61 a dollar and gradually moved downwards to near 41-level during the day.The rupee had seen this level last on September 4, 2007 when it closed at 40.9750/9850.The rupee premiums on forward dollar ended further lower on sustained receivings by exporters.The benchmark six-month forward dollar premiums payable in October ended at 31-1/2 - 33-1/2 paise, down from 33-35 paise on Monday and the far-forward maturing in April eased to 57-59 paise from 60-1/2 - 62-1/2 paise previously.

Rupee Tumbles By 32 Paise To 40.48 Against Dollar

The Indian rupee on April 29 tumbled by 32 paise to six-week low at 40.48/49 against the greenback on heavy dollar demand from oil refiners as well as hectic forward coverings by investors amid US dollar gaining strength against rival currencies. At the Interbank Foreign Exchange, the domestic unit continuously moved downwards after resuming steady at 40.15/16 a dollar from its last close of 40.16/17 a dollar. The benchmark six-month forward dollar premiums payable in October ended at 45-1/2 - 47-1/2 paise, down from 54 - 56 paise on April 28 and the far-forward maturing in April dipped to 75-1/2 - 77-1/2 paise from 88 - 90 paise previously