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05-04-2012, 09:38 AM #1
Rupee fall continues, loses 45 paise vs dollar
Continuing steady fall, the Indian rupee approached fast the 54-level against the dollar intra-day but recouped on suspected Reserve Bank of India intervention before ending the day at four-and-a-half month low of 53.41/42, a hefty loss of 45 paise.
At the interbank foreign exchange market, the domestic currency had plunged to an intra-day low of 53.47 on sustained dollar demand from importers amid weak equities.
Dealers said the rupee remained bearish due to a slew of reasons and could have declined to sub-54 levels but for Reserve Bank's intervention. RBI is believed to have asked banks to improve dollar supply.
However, RBI's intervention in the forex market could not be verified independently.
At the fag-end rupee managed to pull back from the day's lows but still ended at 53.41/42, a steep fall of 45 paise.
Previously, the rupee had closed at 53.64/65 on December 15, 2011. In straight three trading sessions of fall, the rupee has depreciated by 87 paise, or 1.66 per cent.
"Due to the continuing structural issues like higher current account deficit, high trade deficit along with concerns relating to GAAR (General Anti Avoidance Rule) provisions, rupee has shown weakness in the recent time," N S Venkatesh, the Head of Treasury, IDBI Bank, said.
In the near-term, this weakness is likely to continue till capital inflows come back to Indian market, he added.