Rupee ends weaker at 48.01 per US dollar

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Mumbai, Oct 8 (UNI) The Rupee today ended weaker at 48.01 against the US Dollar with a loss of nearly seven paise from its last finish on renewed selling pressure on the greenback by foreign banks on reports that the US-based Fed bank cut interest rates by 0.5 per cent to 1.5 per cent.

Dealers said ''Rupee erased most of its losses after mid session, springing back from a more than six year low, after central banks around the world cut key lending rates in a coordinated move to shore up the global economy.

Rupee resumed low at 48.20 and later fluctuated in a wide range between 47.85 and 48.85 during the session to end at 48.01/48.02 per dollar,showing a net 0.15 percent weaker than 47.94/95 on the previous day.

The rupee jumped half a rupee against the dollar and government bond yields fell after central banks around the world cut rates on Wednesday in a coordinated move to shore up the global economy. The benchmark 10-year bond yield fell to 7.94 percent from 8.06 percent before the rate cuts, below Tuesday's close of 8.11 percent.

The partially convertible rupee strengthened to 47.90/92 per dollar, compared with 48.68 in intra day before the announcements and compared with the day's low of 48.8150, its weakest in six years.

The U.S. Federal Reserve led a coordinated round of global official rate cuts. The European Central Bank, Bank of England and the Swiss, Canadian and Swedish central banks all cut rates.

Meanwhile, the Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 48.74 per unit, up by 73 paise, against yesterday's rate of Rs 48.01 per dollar. The reference rate for Euro also rose by 92 paise at Rs 66.12 per unit from yesterday's rate of Rs 65.20 per unit, an RBI release stated.

However, the six-month and annualised forward dollar premium were at a discount below 0.68 (0.08) per cent and 0.25 (0.20) per cent respectively.

The rupee drifted lower in the last couple of days at 65.38/40 (65.02/04) per unit against the Euro. It closed at 83.84/86 (83.74/76) per unit against the Pound Sterling and at 47.90/92 (46.88/90) per hundred units against the Japanese Yen.

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