Financial Daily from THE HINDU group of publications
Thursday, Apr 13, 2006
Financial Daily from THE HINDU group of publications Thursday, Apr 13, 2006 |
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Money & Banking - Forex Rupee slumps Our Bureau
Mumbai , April 12
The rupee slumped against the greenback due to sustained dollar buying by oil importers as well as the RBI. The steep fall in the equity markets also had its impact on the rupee in the local forex market. The domestic currency shed more than 30 paise to close at 45.19, down from the 44.8350/8450 of Monday. According to a money market dealer, oil companies began buying dollars as the price of crude spiralled to $70 per barrel. Contributing further to the rupee's fall was the 306-point decline in the BSE Sensex that drove the currency below the psychological level of 45. "Once 45 was breached, there was panic buying by banks to cover their short positions," the chief forex dealer at a private bank said. "The central bank was buying dollars despite the weakening rupee and stronger liquidity, for building up forex reserves," he added.
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