The partially convertible Indian currency hit an intraday low at 39.36 per dollar and a high at 39.31 per dollar before closing firm after tracking movements in the Indian equity market amid a partially rangebound trading session in the interbank foreign exchage (Forex) market, dealers said. '' The market witnessed--'rangebound volatility'-- and further forex outlook would be influenced by sentiments in the stock market,'' Development Credit Bank Associate Vice President Treasury and Financial Insititutions Group, Navin Raghuvanshi said.
The local unit yesterday hit a nearly six and half month low at 40.3850/3950 against the US Dollar, depreciating by 37 paise on a steep fall in Indian bourses as well as Dollar strengthening in global market.
The benchmark Sensex today estended the loss for the third consecutive day and plunged by over 337 points. Meanwhile, the six month premium was quoted extemely low at (negative) - 0.30 (-0.20) per cent and annualised premium closed at 0.10 (0.14) per cent. The Reserve Bank of India fixed the reference rate for the US dollar at Rs 40.29, 3 paise up from the previous rate of Rs 40.26.
The Indian unit traded weak against all the major currencies due to dollar geting stronger in the global market. It closed at 61.31/32 (61.30) against the Euro. Rupee ended at 80.05/06 (80.03/04) per unit against the Pound Sterling and closed at 39.09/10 (39.20/21) per hundred units against the Japanese Yen.