Thursday 13 February 2014

Rupee Falls To 62.42 On Dollar Demand, Weak Stocks

Thursday’s drop of 32 paise is the biggest since the 44-paise fall on January 27.The rupee on Thursday erased initial gains and slipped 32 paise, logging its biggest daily drop in over two weeks, to end at 62.42 versus the dollar in line with weakness in domestic stocks and sustained demand for the American currency from oil importers.


The rupee commenced higher at 62.05 a dollar from last close of 62.10, a three-week high. It improved further to a high of 62.03 due to higher opening in domestic equities and initial dollar selling by exporters.


Later, it dipped on sluggish stock markets to a low of 62.46, before concluding at 62.42, logging a fall of 32 paise or 0.52 per cent. It had gained 33 paise or 0.53 per cent in the last two days. Thursday’s drop is the biggest since the 44-paise fall on January 27.


“In the last couple of sessions, we have witnessed that India’s trade data, IIP and CPI have all bedn encouraging. However this set of data has failed to give support to the rupee. On the global front, dollar index is trading flat amid absence of major events or data releases,” said Abhishek Goenka, founder & CEO, India Forex Advisors.


The benchmark S&P BSE Sensex on Thursday plunged by 255.14 points, or 1.25 per cent, while FIIs injected Rs 211.99 crore on Wednesday, as per provisional data with stock exchanges.


The dollar index, an indicator of other six major global currencies, was sharply down by 0.47 per cent ahead of key economic data later in the day.


Source:- thehindu.com





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