India Forex - Rupee falls to 7-week low at 46.81 against dollar on Tuesday 9 February 2010
Written by admin on February 9th, 2010 in India Forex.
India Tuesday 9 February 2010 - The rupee ended near its lowest in seven-weeks on Monday, unable to sustain a boost from the sharemarket turning around early losses and as the dollar lost ground against major currencies.
The rupee declined 0.1% to 46.81 per dollar. It touched 46.90 earlier, the weakest level since December 28. The currency slid 1.2% last week.
The partially convertible rupee closed at 46.83/84 per dollar from 46.73/74 on Friday. It fell as low as 46.8650, its lowest since December 23, with traders saying a figure of 46.90 reported in afternoon trade was a mis-hit.
“The market was very volatile today. The rupee’s weakness was initially held by custodial flows, but with the stock market tanking it followed the weakness, recovering mid-afternoon when globally risk got pushed up,” said Nitesh Kumar, an inter-bank dealer with Development Credit Bank.
“But that was short-lived as the dollar came off its lows globally and European shares also turned negative after a firm start, pushing the rupee down again,” he added.
The euro edged up against the dollar on Monday, recovering after recent losses but still close to multi-month lows on concerns about the fiscal health of some euro zone countries.
The index of the dollar against six major currencies was trading down 0.2%. The index had earlier dropped as much as 0.4% in Asian trade. One-month offshore non-deliverable forward contracts were trading at 46.91/47.01, weaker than the onshore spot rate, suggesting a bearish near-term outlook.