The rupee on Tuesday lost 42 paise to 55.60 against the U.S. dollar in early trade on the Interbank Foreign Exchange market, snapping three sessions of gains, weighed down by dollar’s gains against the euro overseas.
Forex dealers said besides weakness in the euro against the dollar overseas on eurozone worries, month-end demand for the American currency from importers also weighed on the rupee’s value but a higher opening in equity markets capped the losses.
The rupee ended 20 paise higher at close at 55.18 against the U.S. currency on Monday.
The domestic currency had gained as much as 82 paise to a dollar in the last three days, extending a turnaround of sentiment from last Thursday when the rupee was at its all-time weakest point at 56.38 to a dollar.
Keywords: Dollar-Rupee trade
It is not clear why RBI is allowing to depreciate Rupee deeply. The
reason that our exports to Europe have come down is not significant
when we have a reserve of US $ 290 billion earned mainly through
foreign trade. It is not good for our county to have the Rupee value plummet at a time every other nation has appreciating India's economic
progress. Our Finance Minister and RBI along with our economists
should sit together and stabilize Rupee value at a reasonable level.
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