Business Daily from THE HINDU group of publications
Saturday, Mar 01, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Saturday, Mar 01, 2008 ePaper | Mobile/PDA Version |
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Money & Banking
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Forex Rupee drops 24 paise Mumbai, Feb. 29 The rupee weakened by 24 paise against the greenback on Friday on dollar buying by some foreign banks. The home currency opened at 39.88/90 and saw a choppy trade and fell to an intra-day low of 40.03 as the stock markets tumbled. The benchmark BSE Sensex fell by 566 points intra-day due to the increase in the short-term capital gains tax to 15 per cent from 10 per cent. The fall in the banking stocks following the announcement of waiver of agri loans also brought Sensex down.Bankex, however, recovered later during the day on clarification from the Finance Minister that the Government would reimburse the waived off amount. "Foreign banks were buying dollars in anticipation of a possible cash crunch next week and this weakened the rupee further," said a dealer at a private bank. The rupee closed at 40.02, down from the previous close of 39.78. Foreign exchange dealers expect the rupee to weaken further to 40.08/09 next week. "Exporters will, however, come in and start selling at these levels which will help the rupee to appreciate a bit," said Mr Navin Raghuvanshi, Associate Vice-President, Treasury and Financial Institutions Group, Development Credit Bank. In the forwards, the six-month premia closed at 0.22 per cent (0.25 per cent) and the 12-month closed at 0.48 per cent (0.50 per cent). Our Bureau
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