Press Trust of India
Mumbai, Feb 22: The rupee Monday dropped by 15 paisa to end at a fresh 30-month low of 68.61 per dollar on renewed demand for the American currency from banks and importers on the back of higher greenback overseas amidst sustained foreign capital outflows. Even the persistent rise in equity market failed to restrict the rupee’s fall, a forex dealer said.
The domestic unit resumed lower at 68.60 as against last Thursday’s closing level of 68.46 at the Inter-bank Foreign Exchange (Forex) market and dropped to 68.70 per dollar before concluding at fresh 30-month low at 68.61, a loss of 15 paisa or 0.22 per cent. It hovered in a range of 68.70 and 68.50 during the day. The rupee had hit its all-time closing low of 68.80 per dollar on August 28, 2013 after plunging to 68.85 mark on the same day in the intra-day trade. The dollar index was up by 0.53 per cent against a basket of six currencies in the late afternoon trade.
Meanwhile, the Rupee has hit record low at 68.91 a dollar (net of forward premium) in the offshore market, known as non-deliverable forwards market, as investors seek safety of safe heaven assets in US amid global growth concerns. The move, which may soon be followed in the domestic spot exchange rate, is likely to cheer domestic producers facing stiff export competition globally and a section of expatriates remitting funds back to India. The yen was weaker against its rivals during Asian trade Monday, as investors opted to sell the safety of the Japanese currency amid Tokyo stocks’ steady gains.
Oil prices recovered in Asia Monday after a steep fall in the previous session, with US crude back above $30 a barrel as traders mulled the impact of a potential freeze by key producers. Pramit Brahmbhatt of Veracity Financial Services said, “The rupee started on a negative note and we saw the rupee depreciating as day progressed thus by strengthening USD. Despite positive cues from domestic equity market where
Nifty gained 24 points, a surprising rally in USD kept rupee under pressure. Thus to end the day rupee closed with a loss of 15 paisa at 68.61 levels. Trading range for spot USD/INR pair is expected to be within 68.20 to 68.80 levels.
Meanwhile, the benchmark Sensex ended higher by 79.64 points or 0.34 per cent. In forward market, premium for dollar firmed up further on sustained paying pressure from corporates. The benchmark six-month premium July contract moved up to 196-201 paisa from the last weekend’s level of 196-198 paisa and far forward January 2017 contract also moved up further to 422-424 paisa from 416.5-418.5 paisa previously. The RBI fixed the reference rate for the dollar at 68.5517 and for the euro at 76.1952. In cross-currency trades, the rupee recovered sharply against the pound sterling to end at 96.97 from 98.34 on last Thursday and also firmed up against the euro at 75.85 as against 76.08 previously. However, the home unit dropped against yen to finish at 60.54 per 100 yen from 60.13.
