The partially convertible Indian currency fell sharply in midday trade to touch a low of 42.66/67 per dollar as losses in the local stock market raised worries about foreigners selling their portfolio holdings, triggering more outflows from the local market, dealers said. Foreign investors have sold more than USD 3.9 billion of Indian shares so far this year, pulling the rupee down by more than 7 percent, marketmen observed.
Reserve Bank of India (RBI) today fixed the reference rate for US Dollar at Rs 42.53 per unit, 29 paise higher, from the previous day's level of Rs 42.24 per USD.
The six-month premium was quoted slightly lower at 1.61 (1.63) per cent and annualised premium closed at 1.41 (1.43) per cent.
Rupee ended the day weak at 66.46 (65.57) per unit against Euro. It closed at 84.07 (82.91) per unit against the Pound Sterling and ended firm at 40.78 (40.39) per hundred units against the Japanese Yen.