Money & Banking

Rupee tumbles to two–month low

PTI Mumbai | Updated on January 31, 2011 Published on January 31, 2011

Indian rupee (file photo)   -  The Hindu

The rupee lost 14 paise on Monday to end at a fresh two-month low of 45.90/91 against the dollar on month-end demand for the US currency amid increased capital outflows. Forex dealers said the initial dip in the rupee value was due to early steep fall in local equities where the BSE Sensex was down by over 357 points.

At the forex market, the domestic unit opened sharply lower at 45.97/98 a dollar from its last weekend’s close of 45.76/ 77 and immediately crossed the 46-mark, after November 30, 2010, to touch a low of 46.05. However, sustained month-end dollar demand from importers as well as oil refiners helped the rupee recover in the later part of the day. The rupee later touched a high of 45.89 before concluding at 45.90/91, still lower than its previous close.

The rupee premium for the forward dollar ended with small changes either side. — PTI

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Published on January 31, 2011
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