Business
Rupee ends at yet another record-low
MUMBAI
FEB. 11.
The rupee lost modest ground against the U.S. currency today, ending at yet another record-low of Rs. 48.71/72 after dollar demand from state-run banks aborted an early rupee rally backed by weekend supplies and kept it under mild pressure.
In moderately active two-way trade at the interbank foreign exchange market, the rupee fell by a paisa from last Friday's finish of Rs. 48.70/71 following an early rally to Rs. 48.68/69, supported by dollar supplies collected over the weekend. It opened at Rs. 48.71/72.
Dollar supplies accumulated over the weekend from export proceeds and foreign fund inflows gave the rupee underlying support, but steady dollar demand from public sector banks prevented a rupee rally and also pushed it down to new lows, dealers said.
However, the forex spot trade was generally subdued and lacked clear market direction, they added.
The rupee declined by a whopping 19 paise last week, pulled down by dollar demand from nationalised banks, presumably at the behest of the central bank.
The Reserve Bank of India (RBI) Governor Bimal Jalan statement last Friday that the RBI was buying dollars in a major way to boost forex reserves and that the apex bank was not targeting a specific level for the rupee, suggests that the rupee's recent decline to record lows has the blessing of the RRI, a banker said. "I will not be surprised if the rupee falls by yet another ten paise this week,'' he added. — PTI
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