Monday 6 January 2014

Indian Rupee Depreciates 15 Paise To 5-Week Low Of 62.31 Against Us Dollar

The Indian rupee fell 15 paise to close at a five-week low of 62.31 against the dollar today amid bearish local stocks and importer demand for the US currency.Capital outflows from the equity market aided the rupee's decline, while a weakening US dollar overseas helped the Indian rupee to come off the day's low, a forex dealer said.



At the interbank foreign exchange market, the Indian rupee resumed sharply lower at 62.35 a US dollar from the previous close of 62.16. It moved in a range of 62.24 to 62.4650 on alternate bouts of demand and supply.



The Indian rupee closed at 62.31, a fall of 15 paise or 0.24 per cent. This was the lowest level for the Indian rupee since closing at 62.36 on December 3.



"It started the session on a weaker note today, tracking a strong dollar index and weak Asian currencies. Additionally, a falling euro seemed to have added pressure on the rupee. US dollar has strengthened against overseas currencies on upbeat outlook by the US central bank," said Abhishek Goenka, CEO of India Forex Advisors.



The HSBC/Markit Purchasing Managers Index for India's services industry fell to 46.7 in December from 47.2 in November as new orders declined. It was the sixth consecutive monthly decline in output and the longest period of continuous reduction since the 2008/2009 global financial crisis.



The benchmark 30-share S&P BSE Sensex continued its slide for the fourth straight session and closed 64 points lower. Overseas investors sold a net Rs 318.91 crore of shares today after net sales of Rs 18.06 crore last Friday, as per provisional data.



"The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, is trading weak for the day, which helped the Indian rupee to recover from its intra-day low," said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). "During the day it depreciated almost half per cent, taking cues from local equities which traded weak and closed down." Continued receipts by exporters kept forward US dollar premiums under pressure. The benchmark six-month forward dollar premium payable in June eased to 246-248 paise


Source:- financialexpress.com





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