Rupee hits a 2-year low, ends at 45.56/57 per USD

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Mumbai, Sep 11 (UNI) The Rupee today further fell to a two-year low and closed at 45.56/57 per US Dollar, depreciating about 46 paise as compared to previous close of 45.10/11 as the US unit hit a one-year high and stock market plummeted on weak global sentiments.

The local unit fell sharply as traders were actively participating in Non Deliverable Funds (NDF) market throughout the day, buying dollars from local market and selling in other markets as US Dollar surged sharply, dealers said.

The appreciating dollar and continuous downtrend in stock market resulted in considerable outflows that weighed the Indian unit to plunge to its lowest in about two years, Development Credit Bank's Associate Vice-President Navin Raghuvanshi said.

Demand remained high throughout the day even as the suspected intervention of Reserve Bank of India did not work well to prevent the rupee's sharp depreciation today, he said.

Rupee traded in a wide range band between 45.12 and 45.58 per dollar after opening weaker at 45.30/32 in early trade.

''Further, it is expected to fall against the greenback but it would face resistance near the level of 45.75 per dollar as traders may start selling,'' Mr Raghuvanshi said, adding that people have not seen such a sharp fall in the past two years.

Meanwhile, the Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 45.44 per unit, up by 32 paise, against the previous day's rate of Rs 45.12 per dollar.

The six-month and annualised forward dollar premium was quoted lower at 2.98 (3.36) per cent and 2.57 (2.79) per cent respectively.

The Rupee ended the day weaker at 63.39 (63.69) per unit against the Euro. It closed at 79.83 (79.31) per unit against the Pound Sterling. Rupee ended at 42.65 (42.10) per hundred units against the Japanese Yen.

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