Rupee opens 2 weeks low at 44.82/83/USD
Mumbai, Dec 11: The Rupee today opened two week lower by ten paise and was quoted at Rs 44.82/83 against the US dollar as compared to its previous close of Rs 44.72/73 per USD, on fresh dollar demand by foreign and nationalised banks.
The Indian rupee eased to two-week lows on Monday as traders shrugged off a surprise monetary tightening by the central bank and focused on a stronger US dollar after solid jobs data.
The rupee was quoted at 0.2 per cent lower at 44.82/83 per dollar its lowest since November 24.
The rupee has risen more than five per cent since it struck a three-year low of 47.04 on July 19 helped mainly by robust foreign portfolio inflows, a bulk of which have been mopped up by the Central Bank.
The dollar has strengthened after the solid jobs data and that is keeping the rupee down.
The monthly payrolls report showed US companies added 1,32,000 workers in November, outpacing forecasts for a 1,10,000 gain and prompting investors to rethink expectations the Federal Reserve will cut rates soon.
After markets had shut on Friday, the Reserve Bank of India announced an increase in the cash reserve ratio (CRR) banks must keep with the monetary authority by 50 basis points to 5.50 per cent in two stages.
The Central Bank cited robust economic growth, strong capital inflows, high credit growth and broad money supply as well as a rise in consumer prices as the reason for the move, which is likely to drain USD 3 billion from the banking system.
Later, the domestic currency was low again at Rs 44.85 during the mid-morning session, due to short-covering by local bankers.
The current rupee went lower again by eight paise at Rs 44.68/70 per USD from its previous close, due to renewal buying of the dollar by foreign and local banks, traders added.
UNI