Rupee plunges to sub-53 mark; closes at 4-month low

PTI Mumbai | Updated on March 12, 2018


The rupee on Wednesday fell below the 53 mark intra-day before closing at nearly four-month low of 52.96/97, down by 23 paise against the US currency, due to firm dollar demand and fears of more capital outflows.

Strong dollar overseas and expectations of more capital outflows in the wake of uncertain local equities weighed on the rupee, a dealer said.

At the Interbank Foreign Exchange (Forex) market, the domestic unit touched a high of 52.55 in early trade on firm local stocks and dollar selling by exporters.

However, the rupee soon started losing and immediately fell to below 53-level of 53.03 on weakness in equities amid firm dollar overseas.

Dollar demand from importers also kept the rupee under pressure. It later ended at 52.96/97, a net fall of 0.44 per cent.

The BSE benchmark Sensex, which was trading in positive terrain till fag—end, closed down by about 17 points.

The dollar index, consisting of six major currencies, was up by nearly 0.5 per cent ahead of US private-employment data while New York crude oil was trading below $106 a barrel in European market today.

“The rupee weakened to over four months low on rising dollar index and equally negative global equity markets,” Alpari Financial Services (India) CEO Mr Pramit Brahmbhatt said.

Published on May 02, 2012

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor