The rupee weakened by 47 paise to close at 55.17 against the dollar due to large dollar buying by oil importers and weak domestic equity markets. “Large oil related dollar demand put pressure on the rupee. The fall in the euro and the weak equity markets further weakened the rupee,” said a dealer with a public sector bank. “The Reserve Bank of India intervened to arrest the rupee’s fall towards the close of trading,” the dealer added.
The currency unit opened weaker at 54.87 from Thursday’s close of 54.70 on fresh dollar demand and weak global markets. Intra-day, it moved in a range of 54.84 and 55.20 per dollar. “Uncertainty over the fiscal cliff in the US put pressure on riskier assets making dollar the safe haven for investors,” said Bitupan Majumdar, Analyst, Currency Derivatives, JRG Wealth Management. “The weakness in the rupee may continue. However, we may see some support level at 55.70-55.80 levels,” Majumdar said.
Call Rates and G-Secs
The overnight call money rates ended lower at 8 per cent from the previous close of 8.12 per cent. The benchmark 8.15 per cent government security, which matures in 2022, closed slightly lower at Rs 99.71 from Thursday’s close of Rs 99.73, while the yields remained unchanged at 8.19 per cent.
Keywords: Rupee, dollar, euro, dollar demand, forex market, equity market,
Comments:
We ourselves are responsible for failure of Indian economy by making it
import and export dependent and by opting for multi party person worship
type of democracy. We are paying the price of our own fault as far as
poor quality of life of bottom 75% of population is concerned. Please
look in to the matter
Everyone knows the USD is badly screwed but the Rupee is worse though. As long as corrupt politicians rul India the Rupee will run down the drain.
Rupee will soon be below 75 per 1 USD so those who want to make cash in long term do buy USD now!
Because every Indian loves its disgrace knowingly or unknowingly as we
fondly use costly imported stuffs and services totally disregarding
their cheap indigenous unsubsidized ample substitutes . We all wants
its fall.People living in vicinity of exporting activities love it for
their own reasons. 90% of us are illiterate about it and its ill
effects like inflation which is paralyzing entire economy.May god save
India and its common man by providing all of us some wisdom to use
cheaper swadeshi saving our brothers and sisters rather than expensive
imported which help richest , superfluous unsustainable and climate
changing economies. .
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