Rupee falls further on strong dollar demand

 
Continuing its slide for the sixth straight day, the rupee on Wednesday lost 17 paise to trade at a fresh two-month low of 63.88 in early trade on strong dollar demand from importers amid weak local equities.

At the Interbank Foreign Exchange (Forex) market, the local currency opened lower at 63.88 a dollar from its previous close of 63.71.

Forex dealers said besides sustained demand for the US currency from importers and a lower opening in the domestic equity market also put pressure on the rupee but dollar's weakness against euro in the global markets capped the fall.

The rupee had depreciated by 47 paise to close at 63.71 against the dollar in the previous session. Meanwhile, the BSE benchmark Sensex fell by 53.97 points, or 0.27 per cent, to 20,227.94 in early trade on Wednesday.

Indian rupee drops 83 paise against US dollar, breaches 63-mark

he Indian rupee dropped by 83 paise to 63.30 against the US dollar after a gap of nearly eight weeks on persistent dollar demand from importers and banks on the back of higher dollar overseas.

The domestic currency resumed lower at 63.00 per dollar as against the last weekend's level of of 62.47 per dollar at the Interbank Foreign Exchange (Forex) Market and dropped further to 63.32 per dollar before quoting at 63.30 per dollar at 10.40 am. It moved in a range of 62.94 per dollar and 63.32 per dollar during the morning deals.

Sustained dollar demand from importers and banks in view of firm dollar overseas mainly affected the rupee value against the dollar, a forex dealer said.

In New York, the American currency jumped last Friday after the US created twice as many jobs in October as Wall Street had expected, sparking yet another round of discussion about when the Federal Reserve could slow its bond buys.

Meanwhile, the BSE Sensex dropped further by 129 points, or 0.62 per cent, to 20,537.37 at 10.50 am.

India rupee up 57 paise to 61.08 dollar in early trade

 
The rupee opened strong and was trading 57 paise up to 61.08 against the dollar in early trade at the Interbank Foreign Exchange market on Wednesday as the greenback fell against other currencies overseas after the weak US jobs report fuelled hopes the Federal Reserve will keep its stimulus programme in place.

Besides, increased dollar selling by exporters and a higher opening in the domestic equity market also supported the rupee, forex dealers said.

The rupee had lost 13 paise to close at 61.65 against dollar in Tuesday's trade on sustained demand from importers and banks as investors awaited US jobs data.

Meanwhile, the BSE benchmark Sensex was trading over 100 points down in late morning trade on Wednesday.

Rupee down 27 paise to Rs 61.79 against dollar in early trade

Extending its Monday's losses, the rupee lost 27 paise to Rs 61.79 against the US dollar in early trade on Tuesday on the Interbank Foreign Exchange due to appreciation of the Greenback against other overseas currencies.

Dealers attributed the fall in rupee to gains made by US dollar against the euro and other overseas currencies ahead of US jobs data and a lower opening in the domestic equity market.

Increased demand for the dollar from importers and banks also put pressure on the local currency.

The rupee weakened by 25 paise to close at Rs 61.52 against the dollar in Monday's trade on persistent demand from importers and banks as the US currency strengthened overseas.

Meanwhile, the BSE benchmark Sensex fell 31.74 points, or 0.15 per cent, to 20,862.15 in early trade on Tuesday.

Rupee advances to 7-week high at 61.45 against dollar

Selling of the US currency by banks and exporters triggered by its weakness overseas helped the Indian rupee advance by 28 paise to a seven-week high of 61.45 against the dollar in late morning deals on Friday.

Good foreign capital inflows into equity market also boosted the rupee value against the dollar, a forex dealer said.

The rupee resumed lower at 61.85 per dollar as against the Thursday's closing level of 61.73 at the Interbank Foreign Exchange (Forex) Market on mild dollar demand from some banks.

However, it recovered immediately to 61.34 before quoting 61.45 per dollar at 1045 hours, on fresh selling by banks and exporters.

It may be recalled that the dollar was quoted at 61.32 on August 16, 2013.

The domestic currency hovered in a range of 61.34 and 61.95 per dollar during the morning deals.

In New York market, the dollar hit an eight-month low against the euro on Thursday as investors grew more concerned about the economic effects of a prolonged shutdown and debt-ceiling debate.

Meanwhile, the benchmark BSE index Sensex moved down by 29.66 points or 0.15 per cent to 19,872.41 at 1125hours, after earlier touching the 20K level.

Rupee slumps to 67.95 on persistent capital outflows, heavy dollar demand

Mumbai, Sept 4:  

The rupee further slipped 193 paise to 67.95 against the dollar on persistent capital outflows and heavy dollar demand from banks and oil importers at 4.26 p.m. local time.

The domestic unit opened 28 paise weaker to 66.30 per dollar against the previous close of 66.02 due to renewed dollar demand from importers and appreciation of the American dollar overseas.

Meanwhile, the 30-share BSE index Sensex ended down 651.47 points (3.45 per cent) at 18,234.66.

According to forex dealers, besides dollar’s gains against the yen and euro on improved economic data, increased demand from importers for the American currency also put pressure on the rupee.

Brinda Jagirdar, Economist, said: "While the sharp fall in rupee and its aftermath has caused a lot of mayhem on the markets, particularly pressure on corporates and banks, its impact on exports could be positive. However, the recent PMI data coming in at below 50 (at 48.5) has highlighted the contraction in the manufacturing sector. Thus, at a time when external demand appears to be rising on the back of economic recovery - Germany's PMI is the highest since July 2011 - India's PMI is at a four-year low, so the economy is unable to ramp up its manufactured exports and benefit from a weak rupee.''

The rupee sentiment was hit on lower GDP growth data announced last week.

India’s GDP (gross domestic product) growth decelerated to 4.4 per cent — the slowest pace of expansion since the 2008 meltdown — in the first quarter (April-June) of the current fiscal.

Special dollar window

Further, the Reserve Bank of India had announced a special dollar window for oil retailers, which helped ease the offshore non-deliverable forward (NDF) contracts.

“The RBI measures limited the volumes in the currency market by more than half. Hence, the volatility reduced to some extent. Also, the RBI did not intervened for the first time in many days,” said a dealer with a nationalised bank.

The rupee saw sharp movements last week. It had hit a historic low of 68.80 against the US dollar on August 28. It had dropped 3.7 per cent during last week alone.

Rupee depreciation

The Ministry of Finance had said that the rupee depreciation is not reflective of any weakness in the economy. Also the rupee is heavily under-valued at the moment and it is being addressed.

Though a strong dollar and dollar demand from importers limited the rupee gains, investors are hoping for positive measures after the new RBI Governor assumes charge on September 5.

Call rates, G-Secs

The inter-bank call money rate, the rate at which banks borrow money from each other to meet their short-term fund requirements, was trading lower at 10.15 per cent from its previous close of 10.25 per cent.

The 7.16 per cent government security, which matures in 2023, was trading a tad higher at Rs 91.79 from the previous close of Rs 91.47 .Yields softened to 8.41 per cent from 8.47 per cent.