Rupee hits a 10-week low of 55.53 against dollar
23 Nov 2012
The rupee plummeted to a 10-week low of 55.53 against the US dollar, weighed down by persistent dollar buying by oil companies.
The Indian currency opened trading almost flat at 55.20 against Thursday's close of 55.21 against the dollar, but fell further to 55.53 against the greenback as trade progressed. The rupee closed at 55.51 to the dollar, a net loss of 30 paise (or 0.54 per cent), from its previous close.
The Indian unit has been on a losing streak for the past three weeks amid reports of rising fiscal deficit and poor show on the growth front.
The Reserve Bank of India (RBI) is reported to have intervened to check high volatility in foreign exchange market, at 55.45 level.
RBI has pressed public sector banks to sell dollars to resist rupee's sharp fall, dealers said.
Although the intervention helped the rupee pare losses and rise to 55.33 a dollar, it ended the day's trading at 55.51 against the dollar.
The rupee has fallen nearly 7 per cent from a high of 51.62 against the dollar recorded on 5 October 2012.
Analysts expect the rupee to continue its downside amidst rising commodity prices, inflation and persistent dollar buying by oil companies.
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