1. Indian rupee falls for 3rd successive week; down 27 paise to 63.57 against US dollar

Indian rupee falls for 3rd successive week; down 27 paise to 63.57 against US dollar

Heavy dollar demand from importers amid sustained capital outflows and weakness in local equities weighed on the rupee...

By: | Mumbai | Published: December 27, 2014 4:16 PM
Indian Rupee, Rupee today, Rupee vs Dollar

In straight three weeks, the rupee has plunged by 180 paise or 2.91 per cent.

Heavy dollar demand from importers amid sustained capital outflows and weakness in local equities weighed on the rupee as it depreciated for the third successive week to end 27 paise down at 63.57 against the Greenback.

The Forex market was closed on December 25 on account of “Christmas”.

The rupee resumed steady at its last weekend’s close of 63.30 per dollar at the Interbank Foreign Exchange (Forex) and tried to recover to log a high of 63.1375 on an initial rally in domestic stocks.

However, it fell back on dollar buying by importers, mainly oil refiners, to meet their month-end requirements and capital outflows to a one-week low of 63.70.

It later recovered some ground and finished the week at 63.57, still showing a net fall of 27 paise, or 0.43 per cent.

In straight three weeks, the rupee has plunged by 180 paise or 2.91 per cent.

Foreign portfolio investors continued their selling for the last twelve days since December 9. They sold shares worth USD 358.56 million on the first three days of the week, as per Sebi data.

Forex dealers said the rupee closed lower taking cues from the dollar demand from oil companies and also the dollar index is trading at multi-year high. To make the things worse, local indices also traded weak.

Pramit Brahmbhatt, Veracity Group CEO said, “Rupee depreciated during the week taking cues from the dollar demand from oil importers which dented the movement of rupee.

“Also local indices closed on a weak note. During the week, the rupee depreciated and eventually closed at ended the week at 63.57.”

“The trading range for the Spot rupee is expected to be within 63.20 to 64.00. Recommended to be cautious and to Buy USD-INR (Futures) on dips with appropriate stop loss as rupee is expected to depreciate further. Pivot Point for the Pair is at 63.47 and below is the Support & Resistance levels,” he added.

In the forward market, premia dropped further on sustained receivings by exporters.

The benchmark six-month forward dollar premium payable in May tumbled to 189.5-191.5 paise from last weekend’s close of 196-198 paise.

Far-forward contracts maturing in November 2015 also fell to 394.5-396.5 from 401-403 paise.

The RBI fixed the reference rate for the US dollar at 63.6355 and the euro at 77.7435 from 63.0670 and 77.4589 last weekend respectively.

The rupee also slipped further to 98.93 against the pound sterling from 98.91 last weekend while recovering against the euro to 77.48 per euro from 77.64.

Against the Japanese currency, however, it recouped to 52.85 per 100 yen from 53.04 previously.

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Tags: Indian Rupee
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