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03-29-2012, 10:07 AM #1
Rupee falls 9 paise, ends at 50.78/79
The Indian rupee on Wednesday fell moderately by 9 paise to close at 50.78/79 against the US currency following weakness in local shares amid good dollar demand from importers.
Slowdown in capital inflows due to lack of clarity on General Anti-Avoidance Rule (GAAR) also weighed on the rupee while fall in dollar overseas capped the rupee slide to some extent.
At the Inerbank Foreign Exchange (Forex) market, the domestic unit opened weak at 50.86/87 a dollar from previous close of 50.69/70 and immediately touched a low of 51.10 on heavy dollar demand from importers, mainly oil refiners, to meet their month-end requirements.
Some weakness in local equities amid expectations of more capital outflows also kept pressure on the rupee, a forex dealer said.
However, dollar selling by exporters at its higher levels on softening global crude oil prices helped the rupee to recover some lost ground and touched a high of 50.72 before ending still lower at 50.78/79. On Tuesday, it had gained by 0.58 paise or 1.13 per cent.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, "The INR though opened on a weak note pared the initial loses and strengthened against dollar till mid-session but shed gains towards close. The sharp rise in Euro and negative equity markets due to lack of clarity on GAAR weighed on INR."
"The Euro rallied in anticipation of a positive outcome in the Euro zone meeting to be held this week over raising the Euro zone financial limits to save it from the debt crisis. The year-end dollar demand has been active and gains are also resisted by some exporter selling," he added.