Money & Banking

Rupee sinks below 50

Our Bureau Mumbai | Updated on March 12, 2018 Published on November 11, 2011

The Indian rupee symbol Photo: P.V. Sivakumar   -  Business Line

After opening lower at 50.35 to the dollar, the rupee appeared to be consolidating around the 50.15 level at around 1330 hours.

Thanks to heavy dollar selling by an IT company, the rupee touched a high of 49.97. However, demand from an oil company pushed the rupee beyond the 50 level, say dealers.

“The market is in a bidding phase only. If the rupee breaks the 50.30 mark then it could test the 51 level soon,” said a public sector bank dealer.

The RBI has not intervened in the foreign exchange market as supplies from exporters and drawals from corporates which have contracted external commercial borrowings are matching the demand.

On Wednesday, the rupee had closed at 50.17 and the euro had fallen to a month's low on Thursday.

The negatives for the rupee include the weak Indian equity markets, industrial production data, which is at a two-year low and fears of an increasing fiscal deficit.

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Published on November 11, 2011
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