Sustained $ demand takes Rs. to 1-week low

Written by Press Trust of India | Mumbai | Updated: Feb 9 2013, 05:38am hrs
Extending losses for the third straight session, the rupee on Friday lost 28 paise to end at an over one-week low of 53.50, due to sustained dollar demand from importers amid sluggish local stocks.

Forex dealers said capital inflows worth nearly $280 million could not stem the fall in rupee.

The local unit started the days trade on a weak note at 53.44 against Thursdays close of 53.22 at the Interbank Foreign Exchange (Forex) market.

It moved in a narrow range of 53.42-53.65, before settling at 53.50, a loss of 28 paise, or 0.53%.

The rupee weakened against the US dollar today, taking cues from sluggish domestic stocks and fall in euro on Thursday.

The dollar index was down by 0.25% against a basket of six major currencies as the euro today stabilised against the dollar as market focus returned to signs that the euro-zone economy was calming down.

The better-than-expected Chinese Trade balance numbers and easing of CPI numbers, sharp rebound in JPY and best German export data pushed the dollar index lower from its high point of the day to below 80 levels, Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said.

Bonds snap 2 weeks of falls; more gains likely

Mumbai : Federal bonds snapped two weeks of falls as a successful stake-sale in power utility NTPC, a lower-than-expected growth estimate for the current fiscal year and hopes of a rate cut yet again in March, kept investors in a bullish mode.

Ten-year bond yields closed down 4 basis points at 7.84%, its biggest single-day fall since January 17. On the week, the 10-year yield dropped 7 basis points, after having risen for the previous two weeks.