In­dian ru­pee closes at 55.16 Vs dol­lar

The Pak Banker - - Front Page -

MUM­BAI

In­dia’s ru­pee closed the trun­cated week down by 41 paise to two-month low of 55.16 against the Green­back on tepid do­mes­tic eco­nomic data amid sus­tained dol­lar de­mand from im­porters. Sharp fall in lo­cal eq­ui­ties too added fuel to the fire.

The Forex mar­ket was closed on Novem­ber 13 and 14 on ac­count of ‘Di­wali’ hol­i­days. Poor in­dus­trial pro­duc­tion data, record-high trade deficit, sticky re­tail-level in­fla­tion and state­ment given by In­dian cen­tral bank Gover­nor D Sub­barao Mon­day re­gard­ing eco­nomic growth and high in­fla­tion dashed hopes of key rates cut by the apex bank in the next mone­tary pol­icy meet­ing.

At the In­ter­bank For­eign Ex­change (Forex) mar­ket, the lo­cal unit re­sumed slightly bet­ter at 54.68 a dol­lar from last week­end’s close of 54.75 and im­me­di­ately touched a high of 54.61. How­ever, slug­gish stock mar­kets amid sus­tained dol­lar de­mand from im­porters, mainly oil re­fin­ers, and weak eco­nomic datas pulled the ru­pee down to a low of 55.2050 be­fore end­ing the week at two-month low of 55.16, ex­hibit­ing a fall of 41 paise or 0.75 per­cent. In straight three week of los­ing string, the ru­pee has slumped by 160 paise or 2.99 per­cent. The In­dian bench­mark sen­sex, this week, plunged by 374.31 points, or 2.00 per­cent, mainly af­fect­ing the ru­pee.

In­dia’s ex­ports in Oc­to­ber con­tracted 1.63 per­cent for the sixth month in a row to USD 23.2 bil­lion, while im­ports grew by 7.37 per cent to USD 44.2 bil­lion, putting pres­sure on the ru­pee, a forex dealer said.

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