Rupee tumbles 57 paise against dollar.

MUMBAI The Indian rupee on Friday tumbled by 57 paise to register its more than one-month closing low of 55.07 against the Greenback following sustained dollar demand from importers and some banks amid firm dollar overseas.

Some hesistancy in domestic equities also aided the weak trend but increased capital inflows failed to restrict the rupee fall, a forex dealer said.

At the Interbank Foreign Exchange (Forex) market, the local currency commenced lower at 54.82 a dollar from
previous close of 54.50 and immediately touched a high of 54.76.

Later, it continued its downslide to log a low of 55.17 before concluding at 55.07, level not seen since November 27, 2012 when it had settled at 55.45, exhibiting a fall of 0.57 paise or 1.05 pct. Today’s fall was the biggest in last two month when it had plunged by 80 paise or 1.49 pct on November 5, 2012.

Dollar demand from importers and some banks continued on hopes of further rise in its value overseas.

The dollar index rose by 0.36 pct ahead of December non-farm payrolls data due later in the day, and after minutes of the Federal Reserve’s last meeting showed its members were considering an end to asset purchases this year.

The Indian benchmark sensex, in a lacklustre trade, ended up by a mere 19.30 points or 0.10 pct while FIIs infused USD 264.54 mln in equities yesterday as per Sebi data.

Mr. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,”The INR extended its weakening spree for the second straight session on sharp rise
in dollar index and weaker tone of global equity markets. The major global currencies were sharply lower after the FOMC members raised concerns over the timing of its monthly easing programme.”

Source : omantribune.com