Rupee at 6-week low, falls 16 paise on dollar demand
Press Trust of India: Mumbai, Jan 08 2013, 00:26 IST
Tracking fag-end selling in stocks, the rupee on Monday surrendered initial gains to close with a loss of 16 paise at a nearly six-week low of 55.23 against US dollar amid sustained demand of the US currency from oil companies.
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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