Rupee's downslide continues

MUMBAI, SEPT. 13. In a continuous downslide, the rupee once again broke the 47.50 dollar barrier to settle at its historic low of 47.56/57 strongly pressured by fresh dollar buying spree on the inter-bank foreign exchange market today.

The rupee had breached the 47.50 level yesterday but later recovered sharply after the Government made a statement that the worst terrorist attack in the U.S. would not have any immediate impact on the Indian currency.

After ruling at 47.14 a dollar for quiet a long time on sustained dollar selling, the rupee has been hitting new low since September 6.

The Indian unit opened marginally weak at 47.4350/4450 a dollar but came under pressure immediately thereafter and went into a tailspin ending at 47.56/57 against 47.42/44.

The rupee faced tremendous pressure when foreign banks as well as public sector banks started heavy dollar purchases to meet ever- increasing demand from corporates and importers which went panicky after the rupee crossed 47.50 mark during trading.

Though international crude oil prices came down marginally and supplies were normal as before, there was panic import covering after 47.50 a dollar level in the forex market on fears of further slide in the rupee value, dealers said.

Meanwhile, the Reserve Bank of India fixed the reference rate at Rs. 47.54 a dollar against Rs. 47.43 yesterday.

- PTI

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Section  : Business
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