Indian rupee sees worst day in 1-1/2 months



REUTERS

Published — Saturday 23 February 2013

Last update 22 February 2013 2:07 am

| نسخة PDF Print News | A A

MUMBAI: The Indian rupee fell its most in one-and-a-half months as global risk aversion pushed local stocks sharply lower, with the currency awaiting cues from the federal budget next week.
Global risk assets were pummeled as world share markets fell and the dollar and safe-haven assets rose, a day after minutes of the Federal Reserve’s last policy meeting cast doubts over how much longer the US central bank would stick to its stimulus plan.
The sell-off was reflected in Indian markets as local shares fell their most in nearly seven months, raising concerns about whether there will be continued inflows into equities that have largely buoyed the rupee so far.
Volumes continued to be thin as there was little participation from state-run banks in the second day of a nationwide strike.
“The fall in the rupee on Thursday was a reflection of the stock market. However, I expect some bunched-up dollar inflows on Friday due to the ongoing strike,” said Sudarshan Bhat, chief foreign exchange dealer at Corporation Bank.
He expects the rupee to trade in a 54.25-54.75 range in the run-up to the federal budget.
The partially convertible rupee closed at 54.47/48 per dollar versus its previous close of 54.075/085. It fell 0.7 percent, its biggest daily fall since Jan. 4.
Dealers are looking forward to the federal budget to see whether Finance Minister P. Chidambaram will present a budget that will put fiscal discipline ahead of populist spending.
A budget favorable to rating agencies and foreign investors is likely to trigger a rally in equities and the rupee.
In the offshore non-deliverable forward PNDF, the one-month contract was at 54.82, while the three-month was at 55.48.
In the currency futures market, the most-traded near-month dollar/rupee contract on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 54.55 with a total traded volume of $ 6.4 billion.

What's happening around Saudi Arabia

JEDDAH: At the weekly Cabinet meeting on Tuesday, Vice Custodian of the Two Holy Mosques Prince Mohammed bin Naif briefed the Cabinet on the talks held by Custodian of the Two Holy Mosques King Salman with President Abed Rabbo Mansour Hadi of Yemen,...
JEDDAH: Private schools have been devising new ways to raise money from parents to circumvent the Education Ministry’s cap on fee increases, a local publication reported here recently.Schools now charge for services that do not require the ministry’s...
JEDDAH: Vice Custodian of the Two Holy Mosques, Minister of Interior and Chairman of the Supreme Haj Committee Prince Mohammed bin Naif has approved the general plan for implementation of Civil Defense works in emergency cases during the current Haj...
RIYADH: The government has shut down a cosmetics factory in Riyadh for using undisclosed raw materials and unhygienic process at its production facility.A team from the Ministry of Commerce and Industry, during a routine inspection, found the plant u...
RIYADH: Recruitment offices here have decided to stop hiring Bangladeshi workers because they claim that a supply crunch has raised costs.Ibrahim Al-Megheimish, a recruitment expert, said that there are too few Bangladeshi workers seeking employment,...
RIYADH: As many as 200 students have enrolled into different courses at the Riyadh-based Saudi Aviation Flight Academy (SAFA) with 70 percent of them being Saudi nationals, said Saleem Bava, head of marketing and admission at SAFA.SAFA offers a mix o...

Stay Connected

Facebook