×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Rupee slides to biggest single session fall in 2 weeks

Rupee slides to biggest single session fall in 2 weeks
Comment E-mail Print Share
First Published: Tue, Nov 01 2011. 05 38 PM IST

Updated: Tue, Nov 01 2011. 05 38 PM IST
Mumbai: The Indian rupee posted its largest one session fall in nearly two weeks on Tuesday as concerns that Europe’s debt crisis may worsen eroded global risk appetite hurting equities and the euro.
The partially convertible rupee ended at 49.27/28 per dollar, 1.2% weaker from its previous close of 48.69/70 making this the biggest single day fall for the unit since 20 October.
Intraday, the unit had moved in a wide band of 48.8300 to 49.3150, but traders ruled out any intervention at the lower levels from the central bank stating the currency had seen far worse single day swings.
The central bank’s policy states it would intervene in the foreign exchange market only to cut volatility and not to support any levels on the rupee.
“Worry is that the Greece referendum could aggravate the euro zone crisis many times over. It could even hit the integrity of the euro. So until the Fed and the ECB release their views on the global economy, extreme volatility will be seen,” said Naveen Raghuvanshi, an associate vice-president at Development Credit Bank.
The US Federal Reserve will announce its rate decision on Wednesday around 1815 GMT while the European Central Bank rate announcement is due at 1245 GMT on Thursday.
The euro fell more than one percent versus the dollar and yen after Greece’s unexpected call on Monday for a referendum revived uncertainty over how the euro zone will solve its debt crisis.
Greek Prime Minister George Papandreou could be forced to announce a snap election if a public angry with swingeing austerity measures rejects the latest EU aid deal.
Last Thursday, the euro zone leaders struck a last-minute deal to contain the currency bloc’s two-year-old debt crisis.
The euro was at $1.3702 at end of rupee trade, sharply down from $1.4001 on Monday, while the index of the dollar against six major currencies was at 77.273 points versus 75.982 points.
The global risk aversion dented the local benchmark share index that ended down nearly 1.3%.
The one-month onshore forward premium on the rupee was at 27.50 points from 26.25 on Monday, the three-month premium was at 66 points from 68.50 and the one-year premium was at 161 points, from 169.
The one-month offshore non-deliverable forward contracts were quoted at 49.59, weaker versus the spot rupee rate.
In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange and the United Stock Exchange both ended at 49.5175 while on the MCX-SX it settled at 49.5225. The total traded volume on the three exchanges was $4.68 billion.
Comment E-mail Print Share
First Published: Tue, Nov 01 2011. 05 38 PM IST
More Topics: Markets | Rupee | Currency | Asia | BSE |