Rupee dips sharply to 45.44/45/USD as global markets fall

Mumbai, May 15 (UNI) The rupee fell sharply by 40 paise to 45.44/45 per US dollar as compared to its last close of 45.04/05 due to a sell-off in the global stock markets, said a dealer in the forex market.

Earlier, the rupee opened weaker by four paise at 45.08/10 per US Dollar as compared to the last close of 45.04/05, the dealer added.

The rupee, then, dipped sharply by 14 paise to 45.1850/1950 per USD in the mid-morning session as stock markets slipped.

As the stock markets fell by more than 500 points around 1500 hrs to 11,770 points, the rupee plunged to the day's low of 45.57 per US dollar, marking a fall by 52 points.

Higher crude oil prices, quoting in the range of USD 71-72, quite a high price for Indian importers, also put pressure on the rupee.

The foreign fund outflow of Rs 1,199 crore in the equity market on Thursday put extra pressure on the rupee right since morning.

Reserve Bank of India (RBI) fixed the reference rate at 45.39 per US dollar which was 34 paise lower as compared to Friday's level.

The six-month forward premia ended lower at 1.02 per cent from the previous close of 1.08 per cent.

The one-year forward premia, too, ended lower at 1.10 per cent from the previous close of 1.13 per cent.

The cross-currency closing rate for rupee against euro was 58.20 (58.05), which was 15 paise up. For pound sterling it was 85.45 (85.30), 15 paise up and for the Japanese yen it was 41.18 (41.04), 14 paise up from the previous close.

UNI RRP MAZ SKB1838