Indian rupee closes at 55.16 Vs dollar
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.