Rupee at 6-week low, falls 16 paise on dollar demand
At the forex market, the rupee commenced at 55 against last Friday's close of 55.07, but recovered immediately to a high of 54.90 on initial rise in local stocks. However, it could not maintain its gains and fell back to a low of 55.31 on heavy demand dollar demand from oil importers. It finally ended at 55.23, a fall of 16 paise or 0.29%.
“There are two drivers why rupee is falling. The worry on current account gap and minimal FII play in stocks. These are now playing out on participants' minds...Oil demand is also a factor. Unless matching FII inflows come, rupee will always be under pressure,” said Moses Harding, head, ALCO and Economic & Market Research, IndusInd Bank.
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