Mumbai, Nov 11 (UNI) The Rupee today closed at a week's low at 48.12 against the US dollar with a loss of 75 paise as a sharp fall in the domestic equity market raised concerns of more foreigners repatriating funds.
The partially convertible rupee ended lower, its weakest since November 4, and 1.6 percent below 47.35/37 at close. On October 27, the rupee had fallen to a record low of 50.29.
It resumed weaker at 47.62 and later fluctuated in a wide range between 47.45 and 48.15 per dollar in intra day trade.
''There was very good (dollar) demand seen from custodial banks since morning. Importers were there in the market but most of the demand was from the FIIs,'' the chief dealer with a state-run bank said. India's main share index fell 6.61 percent, its biggest fall in more than two weeks, reversing most of the 8 percent-plus rise of the previous two days as fears of a protracted global recession saw investors pare risks. Foreign institutional investors have bought shares worth USD 500 million in November, but have been net sellers of USD 12.6 billion so far in 2008. They bought a record USD 17.4 billion last year.
Dealers said reports of a fall in exports in October affected sentiment as dollar inflows into the economy would slow. Local media said exports in October dropped 15 percent from the same month, a year earlier.
However, the Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 47.59 per unit, up by 27 paise, against its yesterday's rate of Rs 47.32 per dollar. The reference rate for Euro was down by 16 paise to Rs 60.57 per unit from its last close of Rs 60.73 per unit, a RBI release said.
Meanwhile, the six-month and annualised forward dollar premiums were lower by 2.75 (3.55) per cent and 2.08 (2.65) per cent respectively.
The Rupee closed at 60/90/92 ( 61.04/05) per unit against the Euro. It closed at 74.50/52 (73.60/62) per unit against the Pound Sterling and at 48.96/98 (47.80/82) per hundred units aginst the Japanese Yen, brokers added.
UNI AR OBB AG 1838