Rupee hits all time low against dollar

MUMBAI: Indian rupee today registered an all-time intra-trade low of 52.73 before recovering some ground on late dollar selling by exporters amid weak dollar overseas to settle at 52.29/30, still showing a loss of 14 paise against a Greenback on sustained dollar demand from importers amid increased capital outflows.

The rupee completed its straight seventh session of losses with a fall of a total 217 paise or 4.34 per cent.At the Interbank Foreign Exchange (Forex) market, the local currency opened bearish at 52.36/37 a dollar from last close of 52.15/16 and immediately touched a life-time low of 52.73 on heavy dollar buying from banks and importers, mainly oil refiners.Persistent capital outflows too aided the rupee downtrend as Foreign Institutional Investors (FIIs) pulled out USD 460.40 million in five days since November 15.However, recovery in local equities and late dollar selling by exporters stem the rupee fall and it rebounded to a high of 52.25 before concluding at 52.29/30, which was also supposed to be closing low, still down by 15 paise.The Indian benchmark sensex today snapped its straight eight trading days of losing string and closed up by over 119 points or 0.75 per cent.Mr. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,”Rupee ended weak today. Local equities closed on a strong note which helped Rupee to recover partially its early losses.””Looking at the global scenario one can expect Rupee to trade near 53.00 levels in coming days and the trading range for the USD/INR will be 52.30 to 52.80 tomorrow,” he added.The dollar index, a gauge of six major currencies, was down by about 0.4 per cent in European market today.The euro firmed as the dollar weakened on Tuesday, after credit-rating agencies maintained their views on the sovereign debt of the U.S., encouraging investors to embrace risk.Fitch Ratings late yesterday was the latest agency to maintain its stance on U.S. debt, after a special U.S.debt-cutting committee said they had failed to reach a deal to reduce the federal budget deficit.The rupee premium for the forward dollar rattes were not (not) received.The RBI fixed the reference rate for the US dollar at Rs 52.7015 and for the euro at Rs 71.0788.The rupee continued its downward march against the pound sterling to settle at Rs 81.93/95 from Monday’s close of Rs 81.59/61 and also dipped further to Rs 70.88/90 per euro from Rs 70.08/10 previously.It, too, moved down further against the Japanese yen to Rs 68.02/04 per 100 yen from its last close of Rs 67.82/84.


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