Rupee off 1-week low as shares rise

Rupee off 1-week low as shares rise
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First Published: Fri, Jan 02 2009. 04 54 PM IST
Updated: Fri, Jan 02 2009. 04 54 PM IST
Mumbai: The rupee came off 1-week lows in afternoon trade on Friday as a rise in the domestic equity market renewed hopes of some fresh capital inflows but some offshore demand weighed on the unit.
At 2:50pm, the partially convertible rupee was at Rs48.92/94 per dollar, off a low of Rs49.13, its lowest since 24 December, and weaker than its previous close of Rs48.76/78.
One-month offshore non-deliverable forward contracts were quoting at Rs49.21/49.31, weaker than the onshore spot rate. Banks buy dollars onshore and sell them in the offshore market to cash in on the price differential.
The exports fell to $11.5 billion in November, while imports grew at a sluggish pace of 6.1% to $21.57 billion, leaving a trade deficit of $10.07 billion for the month, data showed on Thursday.
Shares were up about 1% on hopes of interest rate cuts and a stimulus package to revive the economy.
Foreign funds withdrew $13.3 billion from the stock market in 2008, a key factor in the rupee’s 19% slide last year, its steepest yearly fall since a balance of payments crisis in the early 1990s.
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First Published: Fri, Jan 02 2009. 04 54 PM IST
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