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03-23-2012, 09:32 AM #1
Rupee down 50 paise to over 2-month low against dollar
Completing four days of a losing streak, the Indian rupee on Thursday plunged 50 paise to close at over 2-month low, above the 51-mark, at 51.17/18 against the greenback on sharp fall in local stocks amid continued dollar demand from importers and firm dollar overseas.
However, increased foreign funds inflows in local equities could not able to stem the rupee fall, a dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit opened lower at 50.75/76 a dollar from overnight close of 50.67/68. Later, it continued to moved downwards to touch a low of 51.27 before concluding at 51.17/18, lowest closing since January 16 when it had settled at 51.37/38, showing a fall of 0.99 per cent. In straight four trading days, it had slumped by 99 paise or 1.97 per cent.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said: "The rupee continued to extend its loses over growing uncertainties in national and global markets. The key benchmark indices closed with sharp losses as the parliament was rocked following the report of an alleged coal scam to the tune of Rs. 10.67 lakh crore. The CAG has reportedly criticized the government for the allocation of 155 coal fields between 2004 and 2009 instead of auctioning them off to the highest bidder weighed on the INR."
"On international front, eurozone business activity shrank further in March, suffering its biggest contraction in three months and cementing fears the region is officially in recession. The eurozone economy shrank 0.3 per cent in the fourth quarter of 2011. The euro was sharply lower during the UK session and is expected to continue its loses in US session too. The INR was also weighed by the dollar demand for year and quarter end payments by importers." he added.