Tuesday, November 22, 2011

Rupee plunges to all-time low

MUMBAI, November 23, 2011(Tehelkanews)

On a day of hectic activity, the rupee closed at 52.32 a dollar on Tuesday, 16 paise lower than the previous closing of 52.16, though the 30-share Bombay Stock Exchange sensitive index, Sensex, closed 0.75 per cent higher snapping an eight-session losing streak. The rupee touched an all-time low of 52.73 intra-day against the dollar.

However, the small gain in the equity market is seen as temporary as falling rupee would likely to cause more economic turmoil for the country.

Spot dollar-rupee opened at 52.4300. It traded at a high of 52.7300 and a low 52.2950. It closed at 52.3225. The dollar-rupee November month contracts started trading at 52.4650.

It traded at a high of 52.7975 and recorded a low of 52.3450. It concluded the trading session at 52.3800.

Planning Commission Deputy Chairman Montek Singh Ahluwalia said the rupee value was reflecting only the global economic situation. But the rupee would regain its value.

The rupee lost 81 paise on Monday at 52.15 against its previous close, recording a lowest value in nearly 33 months.

The fall in the value of rupee against other major currencies will push up petroleum prices as well as inflation. Oil and other importers were scrambling to buy dollars at the inter-bank foreign exchange market as the value of the rupee was falling sharply with an increasing current account deficit and fears over unstable Eurozone and gloomy global economy.

Lost 217 paise so far

In seven straight sessions, the rupee has lost a total 217 paise or 4.34 per cent. While the demand for the U.S. dollar shot up from importers, persistent capital outflows accelerated the rupee downtrend as foreign institutional investors (FIIs) pulled out $460.40 million in five days since November 15.

The rupee gained some lost ground after falling to an all-time low of 52.73 a dollar on Tuesday, only when the market started speculating that the central bank might intervene.

However, Finance Minister Pranab Mukherjee said the RBI\'s intervention in the foreign exchange market would not check the slide as the FIIs\' pullout and global reasons were behind the depreciation.

News From: http://www.7StarNews.com

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