Rupee falls by 14 paise against US dollar
Wednesday, 6 August 2008
MUMBAI, Aug 5 (PTI): The Indian rupee yesterday fell by 14 paise to close at 42.49/50 against the greenback due to dollar buying by banks and sluggish equity markets.
At the Interbank Foreign Exchange market (Forex) market, the domestic unit resumed lower at 42.44/45 a dollar against last Friday's close of 42.35/36.
During the day, it moved in a range of 42.34 to 42.50 a dollar.
Dealers attributed the fall in the domestic currency to weakness in equity markets as the Indian stock market benchmark Sensex ended down by 79 points and most of the Asian indices also displayed feeble trend Monday.
Sustained pull-opt by Foreign Institutional Investors (F.I.I.s) from capital market also weighed on the rupee sentiment, they added.
The rupee could not get any support from the central bank's move to raise the lending rates to stem the rising inflation.
Traders and dealers are reluctant to go long on the rupee due to sustained capital outflows, marketmen said.
The Reserve Bank, however, fixed the reference rate for the US dollar at Rs 42.40 and for the single European currency at Rs 66.02.
The rupee premiums on forward dollar continued its downward march and ended lower on sustained receiving by exporters.
The benchmark six-month forward dollar premium payable in January ended at 87 - 89 paise, down from 95 - 97 paise on Friday and the far-forward maturing in July also settled sharply lower at 147-1/2 - 149-1/2 paise from 161-1/2 - 163-1/2 paise previously.
At the Interbank Foreign Exchange market (Forex) market, the domestic unit resumed lower at 42.44/45 a dollar against last Friday's close of 42.35/36.
During the day, it moved in a range of 42.34 to 42.50 a dollar.
Dealers attributed the fall in the domestic currency to weakness in equity markets as the Indian stock market benchmark Sensex ended down by 79 points and most of the Asian indices also displayed feeble trend Monday.
Sustained pull-opt by Foreign Institutional Investors (F.I.I.s) from capital market also weighed on the rupee sentiment, they added.
The rupee could not get any support from the central bank's move to raise the lending rates to stem the rising inflation.
Traders and dealers are reluctant to go long on the rupee due to sustained capital outflows, marketmen said.
The Reserve Bank, however, fixed the reference rate for the US dollar at Rs 42.40 and for the single European currency at Rs 66.02.
The rupee premiums on forward dollar continued its downward march and ended lower on sustained receiving by exporters.
The benchmark six-month forward dollar premium payable in January ended at 87 - 89 paise, down from 95 - 97 paise on Friday and the far-forward maturing in July also settled sharply lower at 147-1/2 - 149-1/2 paise from 161-1/2 - 163-1/2 paise previously.