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Updated: May 22, 2012 19:03 IST

Rupee hits new low of 55.47 against dollar

PTI
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Continuing its free-fall for the fifth day in a row, rupee set a new low of 55.47 before ending at 55.39 against the dollar on relentless demand for the American currency from importers, especially oil refiners, even as foreign fund flows remained muted.

At the Interbank Foreign Exchange (Forex) market, the domestic unit opened sharply higher at 54.60 per dollar from its last close of 55.03 on initial surge in stocks.

But soon dollar demand overshadowed the rupee sentiment even as other Asian currencies rose for a second day despite rating agency Fitch downgrading Japan’s sovereign rating by one notch to A+ with a negative outlook.

Strong dollar demand from importers pulled rupee down to a low of 55.47. The domestic currency, which has lost over 11 per cent since March this year, today finally closed at 55.39, showing a fall of 0.65 per cent or 36 paise.

Forex dealers said for the second day in a row, there was no RBI role today despite rupee touching new lows. They said capital inflows, the major driver behind rupee’s appreciation, were absent in view of the global worries.

Data shows FIIs sold stocks worth Rs 283 crore today.

Indian stocks benchmark Sensex closed 157 points lower.

Moses Harding, Head — ALCO and Economic & Market Research, IndusInd Bank said: “While there was genuine demand for dollars from importers, supply is not able to match the demand due to low capital flows.”

Yesterday after the currency tumbled by 61 paise or 1.12 per cent, Reserve Bank of India (RBI) imposed restrictions of forward contracts by banks and arbitrage trading.

“Rupee also depreciated due to unwinding of positions today. Also, yesterday’s announcement by RBI has short-term negative impact,” said T S Srinivasan, GM (Treasury), Indian Overseas Bank.

Finance Minister Pranab Mukherjee in New Delhi said: “The government is taking a series of steps. However, managing rupee is market-related.... There is a lot of volatility.

“As and when RBI will consider necessary they will intervene. It depends on the market forces and market forces are uncertain,” he said.

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I agree with my countrymen’s view that politicians need to do their job and also the babus, but we too need to do some from our end, we need to adopt “Swadeshi”, I know we cannot have it all swadeshi, but lets try where ever we can.

from:  vignesh
Posted on: May 23, 2012 at 02:15 IST

I couldn't understand what the so called economists, reformists like Mr.Manmohan, Mr.Chidambaram and Mr.Pranab doing...when they are going to stop this downfall ?????

from:  Tulasi Ram
Posted on: May 22, 2012 at 20:40 IST

India's planning is faulty. Decisions of the national leaders are
politically motivated exclusively to earn vote and corrupt money.
They never think of the national interest. NREGA and providing grains
at throwaway price has spoiled the work culture. Agriculal policies
are anti farmer to the extent that farmers prefer crop holiday. Debt
waiver benefited the defulters and spoiled the repayment culture.
Petrolium import is unrestrained to appease the industrialists.
Railway expansion is stopped. Education is neglected. India trails
behind in hardware. Newspapers get paper quota to spend in
advertisement coverage where as text books becomes costly. Except KCC
loan agriculture loan bears more interest than housing loan. Is it
not to please the rich and give patronage to the industrialists? By
2020 entire food stock of the country shall be exhausted and India
shall be bagging to China, Pakistan and even toBangla desh.We have
sports channel but no education or agriculture channel

from:  Pradipta Kumar Purohit
Posted on: May 22, 2012 at 20:33 IST

where have all my well-wishers been ,missing this Rs.55.47 v/s $ golden
purse ? Last time you were not happy with 40 said so sickly but now
bulky or are you only making fool of me ,already promised to my banker
of settling bad loan financing the foreign sojourn with baharwali and
bhitarwali getting ready for her share.what a chance in hand to settle
amicably the burning double issue which our netas are more qualified to
do without outside remittance .

from:  vas
Posted on: May 22, 2012 at 19:49 IST

The Central government will not interfere as the Ministers will be
happy that the money they stacked abroad is increasing in rupee
value. Theynwill be praying for a dollar to be equal to 60 rupees

from:  S N IYER
Posted on: May 22, 2012 at 19:25 IST
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