Rupee sees biggest weekly fall
The rupee posted its biggest weekly decline in nearly 14 years after swaying within a large band on Friday as Indian markets extended losses as concerns remained over the euro zone’s growth prospects.
The partially convertible rupee closed at 46.95/96 per dollar, 0.3 per cent weaker than its previous close of 46.81/82. In early trade, the unit fell to as low as 47.33, its lowest since November 3, 2009, at which point it was down 1.1 per cent.
However, on the week the rupee dropped 3.8 per cent, its biggest fall since a 11.7 per cent decline in mid-July 1996.
“The market was very very volatile, 47.33 levels could not be sustained as there were several corporates who came in to sell around those levels,” said Mr Naveen Raghuvanshi, an associate vice president with Development Credit Bank in Mumbai.
“Despite the recent euro gains, the rupee has not gained much. So for the near-term looks like 46.75 to 47.25 range will hold. Only if the Dow closes in the positive zone today, will we see some rupee strength next week,” he added.
The BSE Sensex dropped 3.2 per cent this week, its third decline in four weeks to close 0.5 per cent lower on Friday, on continued foreign fund outflows.
So far this month, foreigners have pulled out $1.45 billion from domestic shares, bringing down net inflows in 2010 to $5.1 billion. — Reuters
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