Mumbai: The rupee ended marginally lower on 16 November at 39.32/33 against the greenback after touching a low of 39.40 during early trade due to weakness in global equity markets on fears of more financial and economic uncertainty.
The local unit’s bounce from the day’s low, however, was attributed to capital inflows.
In active trade at the Interbank Foreign Exchange (forex) market, the Indian unit moved in a range of 39.31 and 39.40 during the day after resuming weak at 39.3350/3450 a dollar from previous close of 39.30/31.
A sharp fall in Asian indices as well as in the benchmark Sensex during early trading weighed on the rupee sentiment, forex dealers said.
There was no major intervention in exchange market by the central bank as the rupee remained under pressure due to sluggish stock markets, they added.
Meanwhile, the risk aversion remained the guiding principle in global exchange market with further disclosures of credit and housing problems in US, a dealer with foreign bank commented.
The Reserve Bank of India (RBI), which aggressively intervened yesterday, was believed to be sidelined, watching the rupee-dollar movements. PTI
Mumbai: The rupee bounced off early lows on dollar selling by a large exporter on 16 November, but gains were muted on fears of likely central bank intervention and listless stocks.
At 1:26am (0756 GMT), the partially convertible rupee was at 39.34/35 a dollar, off an early low of 39.40 and moving within sight of last week’s peak of 39.16, a near-decade high. Reuters
Mumbai: The Indian rupee dropped on Friday, 16 November, as a fresh bout of risk aversion struck Asian stock markets, raising the spectre of slower capital flows into local shares.
At 9:28am (0358 GMT), the partially convertible rupee was at 39.39/40 per dollar, a quarter of a percentage point weaker than Thursday’s close of 39.30/31 and moving further away from last week’s peak of 39.16, a near-decade high.
“Regional shares are weaker and that is driving the rupee lower, but there seems to be some good dollar selling by some exporters around the 39.40,” said a senior trader at a foreign bank.
Asian stocks extended their falls on Friday amid renewed worries about the health of the US economy.
Indian shares could also follow suit after falling 0.7% on Thursday. Foreigners have sold shares worth about $300 million so far this month, after buying $5.1 billion in October, trimming their net exposure to Indian equities to under $17 billion in 2007.
Dealers also expected the central bank to keep buying dollars around 39.30.
Data released earlier this week showed the central bank bought a record $11.87 billion in intervention in September to check the rupee’s rise and analysts said it played an active role in October and November as well.
“39.30 seems to be the new line in the sand at the moment,” a trader at a private bank said. Reuters