Rupee depreciates by another 12 paise Vs dlr on bearish stocks

Posted By: Pti
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Mumbai, Jan 14 (PTI) The rupee today depreciated by 12paise to close at 45.36/37 against the US currency due toincreased capital inflows amid weak equity markets.

Sustained dollar demand from importers amid better dollaroverseas too impacted negatively the rupee, dealers said.

In fairly active trade at the Interbank Foreign Exchange(Forex) market, the local currency opened higher at 45.20/21 adollar from 45.24/25.

It later moved in a range of 45.14 and 45.44 beforeending the day at 45.36/37.

In a choppy trade, the BSE benchmark Sensex todayfinished sharply lower by 322.38 points or 1.68 per cent overits fall of 351.28 points or 1.80 per cent yesterday, mainlyputting pressure on the rupee.

Foreign Institutional Investors (FIIs) continued theirselling for the seventh straight day and sold shares worthUSD 814.33 crore since January 5.

The dollar index was up by 0.03 per cent against a basketof currencies in European market today.

Global crude oil was trading above USD 90 a barrel inLondon today.

Meanwhile, the overall inflation for December 2010,measured on the basis of wholesale prices, rose to 8.43 percent from 7.48 per cent in the preceding month.

The Reserve Bank is widely expected to hike key policyrates by 25-50 basis points in its quarterly monetary policyreview meeting on January 25, a dealer said.

The rupee premium for the forward dollar closed slightlylower on sustained receivings by exporters. The benchmarksix-month forward dollar premium payable in June closed a tadlower at 128-1/2-130 paise from 129-131 paise previously.

Far-forward contracts maturing in December also eased to243-245 paise from 244-246 paise on Thursday.

The Reserve Bank of India fixed the reference rate forthe dollar at Rs 45.30 and the euro at Rs 60.40.

The rupee moved down further to Rs 71.85/87 against thepound sterling from Thursday''s close of Rs 71.24/26 and alsoplunged to Rs 60.61/63 per euro from Rs 59.46/48 previously.

It too dropped against the yen to Rs 54.76/78 per 100 yenfrom yesterday''s close of Rs 54.48/50.

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