Volatile rupee: Punters will suffer huge losses,warns FinMin

Traders largely attribute the rupee8217;s weakness to the return of state-run oil refining firms,which are now sourcing around 40 per cent of their dollar requirement from the forex market instead of getting it over the special window provided by the RBI in late August. Referring to the special swap windows,Mayaram said,8221;inflows could cross 25-30 billion by the end of it November 30,when swap windows close8221;,and the rupee will stabilise soon.

The market plunged even as finance minister P Chidambaram held a meeting with foreign institutional investors FIIs,who were 8220;bullish8221; on India. After his meeting with FIIs,Chidambaram said,8221;everyone was here,everyone was bullish,there were no concerns8221;.

On Tuesday,the currency resumed lower at 63.35 and moved in a range of 63.30 to 63.84 against the dollar before settling at 63.71,a fall of 47 paise or 0.74 per cent. The rupee has plunged 209 paise,or 3.39 per cent,in five straight sessions. It is at the lowest level since closing at 63.84 on September 10.

On the other hand,continuing its freefall for the sixth day in a row,the Sensex slid 209 points to a one-month low of 20,281.91 before the release of industrial production and consumer inflation data. It has shed over 957 points since ending at the record close of 21,239.36 on November 3.