Rupee hits 6-1/2 months low, ends at 40.3850/3950 per USD

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Mumbai, Mar 3: The Rupee today hit a nearly six and half month low to close on an extremely weak note at 40.3850/3950 against the US Dollar, depreciating by 37 paise on steep fall in Indian bourses as well as Dollar strengthening in global market.

The partially convertible Indian currency hit an intraday low at 39.41 per dollar, near the six and half month low at 40.44/45 per dollar on August 19, 2007, amid high outflow of dollars from the interbank foreign exchage (Forex) market, dealers said. Dealers felt a complete chaotic situation as there was a huge pull out of the US currency form the Indian markets on one side and dollar strengthening on the other side, causing a sharp depreciation in the Indian unit.

After opening the day on weak note at 40.18/19 per dollar, rupee traded in a wide range band between 40.15 and 40.41 during the day.

''The weak global cues reflecting in the Indian bourses and soaring global oil prices over USD 101 per barrel today also played an important role in pushing the local currency at a weaker level,'' Development Credit Bank Associate Vice President Treasury and Financial Insititutions Group, Navin Raghuvanshi said.

The benchmark Sensex today plunged over 900 points, while Nifty tumbled over five percent today.

Meanwhile, the six month premium was quoted extemely low at (negative) -0.20 (0.18) per cent and annualised premium closed at 0.14 (0.45) per cent. The Reserve Bank of India fixed the reference rate for the US dollar at Rs 40.26, 34 paise above the previous rate of Rs 39.92.

The Indian unit traded weaker against all the major currencies due to dollar geting stronger in the global market. It closed at 61.30 (60.70/72) against the Euro. Rupee ended at 80.03/04 (79.31/33) per unit against the Pound Sterling and closed at 39.20/21 (38.35/37) per hundred units against the Japanese Yen.


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