The Indian rupee bounced back from its life-time low of 60.76 logged on Wednesday,still closing down by 12 paise to settle at 59.39 against the Greenback during the week under review,extending losses for the eighth straight week.
The rupee commenced the week on sluggish note at 59.55 a dollar from last weekend’s close of 59.27 and tanked further to an all-time low of 60.76 on Wednesday following month-end dollar demand from oil importers and sustained foreign funds outflows from debt and equity markets,amid speculation that the RBI stepped in to check the currency slide.
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Rise in the US currency in overseas market after US Fed said it may taper off its USD 85 billion a month bond buying programme from later this year and ultimately end at 2014.
However,a sharp moderation in current account deficit (CAD) to 3.6 per cent for the March quarter from 6.7 per cent in the previous quarter and against expectations of 4.4 per cent later aided the rupee to rebound from its historic low.
Hopes of US Fed may delay the plan to taper of monetary stimulus too boosted the rupee sentiment and it bounced back with a vengeance to a high of 59.21 before ending the week at 59.39,still showing a fall of 12 paise or 0.20 per cent. In straight eight week,it has collapsed by 545 paise or 10.10 per cent.
Strong equities on the last two days of the week too aided the rupee rally at the fag end of the week. The Indian benchmark S&P BSE Sensex spurted by 621.57 points or 3.31 per cent,snapping three-week of losing string.
FIIs,however,sold shares worth USD 509.58 million on the first four days of the week as per Sebi data.
The rupee premium for the forward dollar ended mixed on alternate bouts of buying and selling.
The benchmark six-month forward dollar premium payable in November finished lower at 143-145 paise from last weekend’s close of 151-1/2-153 paise,while far-forward contracts maturing in May ended up at 312-314 paise from 310-1/2-312
The RBI fixed the reference rate for the US dollar at 59.6995 and for the euro at 77.9760 from previous weekend’s level of 59.3505 and 78.5930,respectively.
The Rupee bounced back against the pound sterling to 90.54 from preceding weekend’s close of 91.58 and also recovered smartly against the euro to end at 77.62 from 78.26.
It too strengthened against the Japanese yen to 59.97 per 100 yen from last weekend’s close of 60.65.