Rupee ends down on weak equity markets

Rupee ends down on weak equity markets
PTI
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First Published: Mon, Feb 02 2009. 10 15 PM IST
Updated: Tue, Feb 03 2009. 09 23 AM IST
Mumbai: Rupee closed down by 5paise on Monday to settle the day at Rs48.92/93 against the dollar following the weakness in equity markets amid sustained capital outflows.
A firm dollar overseas against the major currencies also kept pressure on the rupee.
During the trade at Interbank Foreign Exchange (Forex) market, the domestic currency resumed sharply lower at Rs49.00/01 from its previous close of Rs48.87/88 and touched a low of Rs49.20 a dollar.
Forex dealers said the rupee’s fall was in line with the sluggishness in equity markets and sustained selling by foreign institutional investors (FIIs).
So far, in the current calendar year, the foreign investors have sold shares worth over $1 billion.
However, it recouped at the fag end on some dollar demand from banks to a high of Rs48.90 before ending at Rs48.92/93.
The BSE Sensex on Monday ended 357.54 points down or 3.79%.
However, the Reserve Bank of India (RBI) fixed the reference rate for the US dollar at Rs49.01 and for the euro at Rs62.38.
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First Published: Mon, Feb 02 2009. 10 15 PM IST
More Topics: Markets | India | Rupee | Dollar | Currency |