The Hindu Business Line : Rupee breaches 49-mark

The rupee continued its depreciating trend against the dollar on Friday, breaching the crucial 49 mark in early trade. The domestic currency depreciated by close to 46 paise due to continuing dollar shortage. Rupee’s movement was characterised by high volatility, as it moved in a range of Rs 1.40. It opened lower at 49 and further weakened to touch an intra-day low of 49.30. It then recovered to touch an intra-day high of 47.90, before closing at 48.46, against the p revious close of 48. Fears of a flight of dollars from the Indian markets following the crash in the overseas indices led to the rupee opening lower by Re 1, said Mr Ashish Parthasarathy, Deputy Treasurer, HDFC. However, a cut in CRR rates and intervention by the RBI helped the rupee stabilise, he said. The RBI is estimated to have sold about $1 billion in the forex market, to check the rupee’s fall, said dealers. In the forward market, the 6-month premium closed higher from -0.64 per cent to 0.06 per cent. The 12-month premium also recovered from -0.23 per cent to 0.15 per cent. In the NSE currency futures market, 1,92,197 contracts were traded for Rs 936.168 crore.

— Our Bureau

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