Rupee plunges by 22 paise as stocks fall

Rupee plunges by 22 paise as stocks fall
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First Published: Mon, May 11 2009. 06 54 PM IST
Updated: Mon, May 11 2009. 06 54 PM IST
Mumbai: The rupee on Monday fell from its nearly three-month high of Rs49.05, trimming its early gains, to close 22 paise down at Rs49.50/52 against the dollar as the equity markets ended lower.
In active trade at the Interbank Foreign Exchange (Forex) market, the domestic unit resumed higher at Rs49.06/08 a dollar from its last weekend’s close of Rs49.28/29 per dollar.
It touched a high of Rs49.05, a level not seen since 17 February 2009, when it registered an intra-trade high of 48.94, in morning deals as the BSE benchmark Sensex was up by over 150 points in early trade following sustained capital inflows.
However, a sudden sell-off in equities because of the uncertainty over the Lok Sabha election results, due on 16 May, weighed on the rupee and it fell to a low of Rs49.52 before ending the day at Rs49.50/52 per dollar.
The Sensex on Monday ended lower by 193.44 points or 1.63% while Asian indices displayed narrowly mixed trends at close.
Dollars demand from importers, mainly oil refiners, also dampened rupee sentiment.
Meanwhile, global crude oil prices were trading over $57 a barrel in Asian trade.
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First Published: Mon, May 11 2009. 06 54 PM IST
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