Rupee ends day at 39.35/36 to greenback

Rupee ends day at 39.35/36 to greenback
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First Published: Tue, Oct 16 2007. 06 16 PM IST
Updated: Tue, Oct 16 2007. 06 16 PM IST
Closing
Mumbai: The rupee on 16 October stepped down to close at 39.35/36 against the dollar on a marginal dip in equity markets and intervention by the central bank.
In lacklustre activity at the Interbank Foreign Exchange (forex) market, the domestic unit resumed lower at 39.34/36 a dollar from overnight close of Rs 39.30/31 and was trapped in a narrow range of 39.30 and 39.3950 per dollar.
Dealers attributed the slide in the rupee to weak stock markets and some dollar buying by the Reserve Bank.
The benchmark Sensex today lost 6.81 points at 19,051.86, after dipping to day’s low of 18,777.75. It touched a peak of 19000 yesterday on the Bombay Stock Exchange.
The RBI was believed to be intervening for the last few days to protect exporters’ competitiveness as higher rupee value hurts exporters.
Oil corporates also bought dollars as the global crude oil prices spiralled upwards to new peak. PTI
Afternoon update #2
Mumbai: The Rupee lost ground again in later afternoon trade on 16 October and was quoting at 39.38 to the dollar, a loss of 8 paise over the previous close. The currency moved in tandem with the stock market. Livemint.com
Afternoon update
Mumbai: The Rupee held steady at 39.31/32 against the US currency on alternate bouts of buying and selling.
In lacklustre activity at the Interbank Foreign Exchange (Forex) market, the Indian unit opened lower at 39.34/36 per dollar from overnight close of Rs 39.30/31 a dollar, due to weakness in equity markets.
However, it later moved in a narrow breadth of 39.31 and 39.37 per dollar before being quoted at 39.31/32 in late morning deals.
Dealers attributed the initial slide in rupee to some dollar buying by oil refining companies to meet their import requirements.
New York crude oil prices rocketed to record highs to close at 86.13 dollars a barrel, amid mounting tensions between Turkey’s government and Kurdish rebels located in northern Iraq.
There was also some stray dollar buying from state-owned banks on behalf of the central bank to stem the rupee’s surge.
Meanwhile, traders said the medium-term outlook for the currency is bullish and it will touch 39 levels in the near future following sustained portfolio inflows. PTI
Morning
Mumbai: The rupee backed away from nine-and-a-half-year peaks on Tuesday, 16 October, in anticipation of slower foreign capital inflows into local stocks because of falls in other Asian markets and record-high oil prices.
Concerns the Reserve Bank of India (RBI) may also step in to kick the rupee lower to protect exporters also weighed on sentiment.
At 9:25am (0355 GMT), the partially convertible rupee was at 39.35/36 a dollar, weaker than Monday’s close of 39.305/310. Last week, it had hit 39.27 — its strongest level since March 1998.
Indian stocks rose 3.5% on Monday, storming past the 19,000 mark on the way to their 17th record high in 18 sessions.
Foreigners have bought a net $16.7 billion of shares this year to Friday, including more than $3.6 billion this month, which if sustained would easily outstrip an all-time record of $10.7 billion in 2005.
That has helped drive the rupee up more than 12.5% against the dollar this year, the most of any Asian currency. Reuters
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First Published: Tue, Oct 16 2007. 06 16 PM IST
More Topics: Rupee | dollar | foreign exchange | RBI | currency |