Markets: Eerie calm

Markets: Eerie calm

it is not clear when market sentiment can change; as in the past, it can be quite sudden.
At a turn and yet not

At a turn and yet not

RBI could be tempted to cut policy rate to support growth at its bi-monthly review.

Indian rupee inks biggest weekly fall in last five months against US dollar

Jan 25 2014, 17:20 IST
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Indian rupee plunged by 73 paise on Friday as US dollar short- coverings by some banks was triggered at 62.45-62.50 level. Indian rupee plunged by 73 paise on Friday as US dollar short- coverings by some banks was triggered at 62.45-62.50 level.
SummaryThe Indian rupee declined in four sessions out of five during the week.

The Indian rupee snapped its two-week of gaining string and closed down by a whopping 112 paise - biggest weekly fall in last five month - to two-month low of 62.66 against the greenback following heavy dollar demand from importers and weak USD overseas.

The Indian rupee declined in four sessions out of five during the week.

The US dollar demand was so strong that firm local equities and sustained capital inflows could not able to stop the rupee fall.

The Indian rupee plunged by 73 paise on Friday as US dollar short- coverings by some banks was triggered at 62.45-62.50 level.

Weak in Chinese as well as US manufacturing data and fears of Fed's tapering plan in its two-day monetary policy meeting on January 28 and 29 also weighed on the rupee at the weekend.

At the Interbank Foreign Exchange market, the domestic unit commenced lower at 61.65 a US dollar from last weekend's close of 61.54 and moved in a wide range of 61.45 to 62.73 before settling the week at 62.66, exhibiting a fall of 112 paise or 1.82 per cent. In last two weeks, it had gained 62 paise or 1.00 per cent.

Previously, it had slumped by 250 paise or 3.96 pct in last week of August, 2013.

The benchmark S&P BSE Sensex washed out major part of its early gains on last day selling, still closing up by 70 points or 0.33 pct while FIIs infused USD 189.89 mln on the first four days of the week, as per Sebi data.

The US dollar index also suffered on the last two days of the week following positive European manufacturing data and hopes of Fed's tapering from January 2014.

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