Rupee tumbles thirty paise, ends at 40.7250/7350 per USD

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Forex
Mumbai, Mar 17: The Rupee today tumbled by nearly thirty paise, fell to a six-month low at 40.7250/7350 against the US Dollar following steep fall in the stock market on extremely negative cues in the global financial markets.

The partially convertible Indian curency slid almost one per cent at 40.83/ 84 per dollar when the bechmark Sensex dipped over 1020 points, the weakest level since September 6, 2007, before closing the session on extremely negative note, dealers said.

The local unit fell the most in two weeks after the US Federal Reserve cut its discount interest rate. It is the second-worst performer this year among the 10 Asian most-traded currencies, as the Indian bourses have had a steep fall, dealers opeined.

Further, the dealers expected more downfall of the loacal unit aginst greenback as the global financial market was under a big crisis. ''Rupee may cross the level of 41.00 level this week because of slowdown in inflows following the US credit crunch and weak global cues,'' Development Credit Bank Vice President Navin Raghuvansi said.

Asian markets as well as Indian markets collapsed heavily today, while crude oil prices hit a new record high at USD 125 per barrel and most of the major economies are expected to face the high inflation rates ahead. Backhome, the bechmark Sensex fell over 950 points, mirroring the negative global sentments, all these togather give a very weak cue for the future sessions, he added.

Meanwhile, the six-month premium was quoted higher at 1.47 (1.37) per cent and annualised premium closed at 1.11 (1.06) per cent. The Reserve Bank of India fixed the reference rate for the US dollar almost on flat note at Rs 40.45.

The Rupee today traded weak against all the major global currencies. It closed weaker at 64.23/24 (62.54/55) against the Euro. Rupee ended at 81.62/63 (81.47/48) per unit against the Pound Sterling and closed at 42.07/08 (39.97/98) per hundred units against the Japanese Yen.


UNI

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