Rupee ends weaker by seven paise at 50.09

Tuesday, November 25, 2008 at 4:11 am

The Indian rupee today ended weaker by seven paise at 50.09/10 against the US currency on a sluggish equity market and consistent capital outflows.

In fairly active trade at the Interbank foreign exchange (forex) market, the domestic currency resumed weak at 50.04/05 a dollar against its previous close of 50.02/03 a dollar, before moving in a range of 49.96-50.25 during the day.

Dealers said there was little demand from oil refiners but the main cause of concern was sliding stocks, causing fears that foreign funds will continue to pull out from equity markets.

They said the rupee attempted a smart recovery at the day’s high in sync with local stocks after the US government announce a USD 20 billion bail out package for the troubled banking giant Citigroup.

The rupee was strained by unstoppable outflow of portfolio investments from the country in the current calendar year, analysts observed.

Oil refiners bought dollars, albeit in small quantity, for their monthly import payments, a dealer with foreign bank commented.

The rupee premiums on forward dollar ended remarkably higher due to fresh paying pressure from banks and corporates.

The benchmark six-month forward dollar premium payable in April ended at 67 – 69 paise, up from 62 – 64 paise on Friday and the far-forwards maturing in October also closed higher at 95 – 97 paise from 85-1/2 – 87-1/2 previously.

Meanwhile, the Reserve Bank of India fixed the reference rate for dollar at Rs 50.09/10 and for the single European currency at Rs 63.40.

In cross-currency trades, the rupee weakened further against the Pound Sterling and the Euro but improved against the Japanese Yen.

The Indian unit dropped further against the British currency to end the day at Rs 75.29/31 per pound from its last close of Rs 75.18/20 per pound and also tumbled against the single European currency to Rs 63.64/66 per euro from its previous close of Rs 63.05/07 per euro.

The domestic currency, however, recovered against the Japanese Yen to close at Rs 52.56/58 per 100 yen from its Friday’s close of Rs 52.69/71 per 100 yen.

(Agencies)

( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)

Rupee ends weaker by seven paise at 50.09

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