Rupee falls sharply in nervous trading

MUMBAI, OCT. 13. The rupee declined sharply against the U.S. currency today but ended off early intra-day all time low in volatile trading at the inter-bank foreign exchange market, driven mostly by fears of surging oil prices following escalating turmoil in West Asia.

The Indian unit closed at Rs. 46.33/34 a dollar, steeply lower from Thursday's finish of 46.27/28 after plunging to historic low of 46.44/46 in intra-day deals. It opened on a distinctly weak note at 46.35/40.

Nervousness gripped the forex spot trading from the very onset of business on overnight news of a fresh round of violence in West Asia, which saw international crude oil prices rise by over $3 to around $36 a barrel.

``Inter-bank speculators took the opportunity to go long on the dollar and pushed the rupee down to fresh low of 46.44/46, as there was a virtual scramble to cover short-dollar positions" a dealer said.

The Indian currency had earlier recorded an all time low of 46.39/41 in intra-day trading on September 19.

Meanwhile, the Reserve Bank of India fixed the reference rate at Rs. 46.38 a dollar.

- PTI

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