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Rupee recovers partly after weak start against dollar

Rupee recovers partly after weak start against dollar
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First Published: Tue, Nov 20 2007. 01 37 PM IST
Updated: Tue, Nov 20 2007. 01 37 PM IST
Agencies
Late morning
Mumbai: The Rupee recovered marginally after resuming weak by 8 paise against the dollar, driven lower by continued weakness in the equity markets on weak global cues.
In active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed lower at 39.42/44 a dollar from the last close of 39.34/35 a dollar but later recovered partially to 39.35/36 late morning on the back of a bounce in stock prices.
The rupee was largely influenced by the volatile bourses and moved in line with stocks activity, forex dealers said.
The Sensex, which had lost 222 points in early trade on 20 November, recovered part of its initiall losses and was at 19,550.55, down 82.81 points from the last close.
The Indian unit initially remained under pressure due to sharp falls in Asian markets, but weak dollar overseas and a partial recovery in stock markets helped it recover partially later, they added. PTI
Early morning
Mumbai: The rupee dropped nearly a quarter of a percentage point to one-week lows on Tuesday, 20 November, on concerns weaker regional stocks may slow capital inflows.
At 9:40am (0410 GMT), the partially convertible rupee was at 39.40/41 per dollar, weaker than Monday’s close of 39.335/345 and moving further away from a near-decade high of 39.16 hit earlier this month.
“The 39.42 level seems to offer good resistance for the dollar/rupee at the moment . If that breaks we may move up to 39.50 quickly,” said a trader at a state-run bank.
“Asian stocks are also weaker and that may pressure local shares to open down,” he said.
Capital inflows into local shares have been a key support for the rupee in recent months. Foreigners have sold more than $100 million worth of Indian shares this month, after buying $5.1 billion in October.
Asian stock markets fell 2-4 percent to two-month lows on Tuesday as investors dumped bank shares amid escalating worries about credit losses.
Currency dealers were also waiting for usual month-end dollar demand from oil refiners. Reuters
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First Published: Tue, Nov 20 2007. 01 37 PM IST