Money & Banking

Rupee slips as import demand rises

Our Bureau Mumbai | Updated on November 08, 2012 Published on November 08, 2012

BL09RUPEE

Rupee slips 17 paise



The rupee ended lower at 54.37 against the dollar on Thursday on persistent demand for the greenback from banks and importers. The Indian unit had opened weaker at 54.55 from Wednesday’s close of 54.20 due to weaker domestic and Asian equity markets amid concerns over US “fiscal cliff.” However, the rupee recovered from the initial losses tracking the euro. Intra-day, the rupee moved in the 54.34-54.66 range vis-à-vis the dollar.

Post US Presidential election, the fiscal crisis looms over the US. Further, there is uncertainty pertaining to the Euro zone sovereign debt problem. This makes the American currency and bonds safe haven for investors.

“We expect rupee to be at 52 levels by this year end and 49 by the end of 2013,” Global Head of FX strategy of HSBC, David Bloom told newspersons at an event here.

The Greek Government has approved an austerity package of spending cuts, tax hikes and other measures needed to receive the aid to avert bankruptcy. Economists are divided on this bailout strategy as some, like Paul Krugman, perceive this as tying the noose around an already strangulated economy.

Call rate drops; bonds end flat

The overnight call money rates closed lower at 8.05 per cent from Wednesday’s close of 8.10 per cent. Intra-day, the rates fell to a low of 7.80 per cent.

The 10-year benchmark 8.15 per cent government security ended almost flat at Rs 99.72. The yield at this price was unchanged at 8.19 per cent.

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Published on November 08, 2012
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