Imran Khan
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Rupee hits new low of 54.82 per dollar
Press Trust of India, 18 May 2012 | 10:44 AM
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Video
FB to set final price; Euro, rupee slide against dollar
25:56
The rupee on Friday tumbled by 35 paise to trade at a new all-time time low of Rs 54.82 against the US dollar in early trade on increased capital outflows and strong demand from importers for the American currency.
Traders said apart from capital outflows by foreign funds, strengthening of dollar against the euro, which plunged to a four-month low following renewed worries over deepening euro zone debt crisis, put pressure on the rupee.
This is the third consecutive day in which the Indian currency has hit new lows, and traders are now watching the 55 to the dollar level closely.
There has also not been any significant intervention from the Reserve Bank of India in the past two days. The central bank has made it clear that it will only step in to manage volatility but that the value of the rupee would have to be market-driven.
Markets, however, are still expecting about $2.5 billion -$3 billion inflows before the end of the month, and are ignoring the fall in oil prices for now
On Thursday, the rupee had touched an intra-day record low of 54.60 before settling at Rs 54.47 against the US dollar.
Meanwhile, the BSE benchmark Sensex plunged by 231.97 points, or 1.44 per cent, to 15,838.51 points in early trade on Friday.
Rupee hits new low of 54.82 per dollar
Press Trust of India, 18 May 2012 | 10:44 AM
Email0 1 40 6
Video
FB to set final price; Euro, rupee slide against dollar
25:56
The rupee on Friday tumbled by 35 paise to trade at a new all-time time low of Rs 54.82 against the US dollar in early trade on increased capital outflows and strong demand from importers for the American currency.
Traders said apart from capital outflows by foreign funds, strengthening of dollar against the euro, which plunged to a four-month low following renewed worries over deepening euro zone debt crisis, put pressure on the rupee.
This is the third consecutive day in which the Indian currency has hit new lows, and traders are now watching the 55 to the dollar level closely.
There has also not been any significant intervention from the Reserve Bank of India in the past two days. The central bank has made it clear that it will only step in to manage volatility but that the value of the rupee would have to be market-driven.
Markets, however, are still expecting about $2.5 billion -$3 billion inflows before the end of the month, and are ignoring the fall in oil prices for now
On Thursday, the rupee had touched an intra-day record low of 54.60 before settling at Rs 54.47 against the US dollar.
Meanwhile, the BSE benchmark Sensex plunged by 231.97 points, or 1.44 per cent, to 15,838.51 points in early trade on Friday.
Rupee hits new low of 54.82 per dollar
