The Hindu Business Line : Rupee breaches 45-mark vs dollar

MUMBAI: The strengthening of the dollar in the global markets coupled with domestic demand for greenbacks, the value of the rupee against the dollar fell by 38 paise on Monday.

It closed at 45.0450/0650. These levels were last tested in end-March.

The domestic currency opened lower and followed a unidirectional fall up to 3 p.m. There was demand for the greenback from importers expecting a further fall in rupee and banks, which were short on the dollar.

Internationally, the euro fell over two per cent against the dollar while the Japanese yen touched a nine-month low against it. The rupee's fall is expected to reverse partially on Tuesday on the news of the exit polls projecting a majority for NDA, said a forex analyst.

In the forwards market, the six months forward closed at - 0.57 per cent (- 0.92 per cent) and the one-year closed at - 0.24 per cent (- 0.70 per cent).

The Government securities prices fell by 30-40 paise intra-day but gained later. The sentiment in the market was weak. The 7.40 per cent 2012 paper which opened at Rs 114.80 touched a low of Rs 114.50 and ended at Rs 114.62. The 8.07 per cent 2017 paper opened at Rs 123.98, fell by almost 50 paise and recovered to close at Rs 123.75.

Liquidity was ample with call rates stable at 4.30-4.50 per cent.

Through the LAF window, the central bank sucked away liquidity worth Rs 21,000 crore at the repo rate of 4.5 per cent.