Rupee plunges against USD, ends at 41.97/98

Mumbai, Apr 17: The spot Rupee today skidded drastically against the USD to end at 41.97/98 as compared to the previous day's close of 41.93.

The Rupee's plunge from a massive nine-year high it had attained in the past few days, was fuelled by the fears that the Reserve Bank of India (RBI) may intervene to stem the domestic unit's rally, said dealers.

The Rupee ended at 41.97/98 per dollar, falling sharply from an intra-day high of 41.62, as compared to the previous close of 41.85/86.

Despite no signs of intervention by the central bank, traders remained concerned today over the Rupee's recent rally, which may compel the RBI to intervene aggressively in coming sessions, in a bid to maintain exporters' competitiveness.

Earlier in the morning session, the home currency had improved to reach a fresh high of 41.62/63 against the USD, as banks and companies sold dollars to generate Rupees to tide over a cash squeeze and as capital inflows remained robust.

UNI