Mumbai, Sep 12 (UNI) The Rupee today ended at a nearly two year low at 45.73/75 against the US dollar with a loss of 14 paise from its last finish on good dollar purchases by foreign banks.
The rupee fell to its lowest level in almost two years as data from the local market regulator showed overseas investors sold more Indian shares than they bought in five of the seven trading days this month. Demand for dollars from importers and capital outflows increased concern on India's current-account deficit widening.
The demand-supply balance and the fundamentals are against the rupee,'' said a leading forex dealer. There's no reason why this trend should not continue in the short term'', he said.
In quiet trade at the Interbank Foreign Exchange (forex) market, the domestic currency resumed steady at 45.58.60 a dollar from its last close of 45.56/57 and later dropped to 45.76/77 in late morning deals.
Dealers said the strengthening dollar against basket of currencies continued to push the rupee downwards for the fourth consecutive day today. They said banks were also seen buying dollars, probably on behalf of importers in anticipation of continued surge in the greenback, which is likely to breach 46 level shortly. Sustained capital outflows created acute shortage of the American currency in the exchange market, traders said.
The Reserve Bank of India (RBI) today fixed the reference rate for the US dollar at Rs 45.77 per unit, up by 33 paise, against yesterday's rate of Rs 45.44 per dollar.
The six-month and annualised forward dollar premium was quoted lower at 2.50 (2.98) per cent and 2.06 (2.58) per cent respectively.
The Rupee ended the day weaker at 64.31/33(63.39/41 ) per unit against the Euro. It closed at 80.77/79(79.83/85 ) per unit against the Pound Sterling. Rupee ended at 42.62/64 (42.65/67) per hundred units against the Japanese Yen.
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