Rupee recorded another 10-month low on Thursday against the U.S. dollar even as the Reserve Bank of India (RBI) Governor aired his concerns on stubbornly high retail inflation and widening current account deficit.
The rupee closed at 56.38/39 a dollar against its previous close of Rs.56.17/18. It touched an intra-day low of 56.37 on Wednesday, a ten-month low, and on Thursday, it touched an intra-day low of 56.39.
The forex market found a bit stronger rupee against the U.S. dollar in the morning session.
However, the rupee fell towards close of the trade following comments from the RBI governor.
While markets were expecting a rate cut in its first mid-quarter review in June, the RBI governor’s statement dashed all hopes.
The Governor had said that the macro-economic factors would be considered while reviewing the policies. The widening current account deficit still continued to be a major concern, he added.
Sensex gains 68 points
Stock indices gained on Thursday as investors were hunting for specific stocks, which were announcing good profits.
The Bombay Stock Exchange (BSE) 30-share sensitive index, Sensex, closed at 20215.40 with a gain of 67.76 points.
BSE automobile stocks gained the most with 2.29 per cent, followed by FMCG 1.88 per cent, power 0.71 per cent and PSUs 0.12 per cent. All other sectoral indices ended in the red.
BSE realty is the biggest looser with 2.39 per cent, followed by metals 1.11 per cent, oil & gas 0.74 per cent and capital goods 0.56 per cent.
On the National Stock Exchange (NSE), the 50-share Nifty closed at 6124.05, up by 19.75 points.
While BSE mid-cap stocks gained by 0.04 per cent, small-cap stocks lost 0.35 per cent.
“The first-half was absolutely bleak with the benchmark indices stuck in a tight range. Weak global cues resulted in the market here trading in sync with its Asian peers. However, action picked up in the second-half, especially in the last hour, with traders rolling over their long positions,” said Amar Ambani, Head of Research, India Infoline.