The Hindu : Business : Rupee breaches 46-mark against $

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Tuesday, Sep 16, 2008
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Rupee breaches 46-mark against $

MUMBAI: For the first time in two years, the rupee on Monday breached the psychologically important 46-level against the dollar to close at 46.05/06 on sustained demand for the U.S. dollar amidst a sharp fall in stock markets. Some public sector banks selling dollars, probably on behalf of the Reserve Bank, and dollar weakening in the overseas markets failed to stem the fall of rupee.

Forex dealers said RBI made a feeble attempt to prevent a sharp fall in the rupee through the largest state-owned bank during the afternoon trade. They said importers continued their dollar buying even as the greenback tumbled in overseas markets after reports of America’s fourth biggest investment bank Lehman Brothers Holdings filed for bankruptcy.

A sharp fall of 470 points in the Indian benchmark Sensex also weighed against the rupee as many fear more capital outflows from equity.

The rupee moved in a wide range of 45.53 and 46.08 before closing lower by 30 paise at 46.05/06, a level not seen since September 19, 2006, when it had closed at 46.0750/0850 against the U.S. currency. — PTI

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