Rupee plunges by 73 paise against U.S. dollar

Mumbai, Nov 11 (PTI) Snapping its two-day gaining streak,
the Indian rupee Tuesday fell by a whopping 73 paise to
48.11/12 against the greenback, as the sluggish equity markets
weighed heavily on the domestic currency and oil refiners
bought dollars to meet their import requirements.

At the Interbank Foreign Exchange (Forex) market, the
domestic unit resumed sharply lower at 47.63/64 and moved in
tandem with the stock markets in a range of 47.45 and 48.15.

Later, it slipped further downwards and settled the day
at 48.11/12, registering a steep fall of 73 paise or 1.54
percent over the previous close.

Although China had on Sunday announced a bailout package
of USD 586 billion plan to mitigate the impact of global
credit crisis and to spur expansion in the world's fourth
largest economy, the lingering global recession kept the stock
markets bearish across the globe Tuesday, affecting the market
sentiment.

The Indian Benchmark Sensex Tuesday ended 696.47 points
or 6.61 percent down at 9,839.69. Most of the Asian indices
also ended lower by 1.66 per cent to 4.77 percent. European
stocks also resumed lower Tuesday morning.


Traders said, fall in the global crude oil prices to near
USD 60 a barrel attracted oil refiners to buy dollars to meet
their import requirements, which also weighed on the rupee.

Market participants are still wary about the recovery in
sluggish world economy and expected more capital outflows in
near future, despite last week's net purchases, they added.

Meanwhile, softening global commodity prices coupled with
a good monsoon at home could pull down the inflation to single
digits early next year, P.M.E.A.C. Chairman Suresh Tendulkar
Tuesday said while pitching for a further lowering of interest
rates by the Reserve Bank of India (R.B.I.).

The R.B.I. fixed the reference rate for dollar at Rs
47.59 and for the Single European Currency at Rs 60.57.

The rupee premiums on forward dollar ended further
sharply lower on sustained receivings by exporters.

The benchmark six-month forward dollar premium payable in
April ended at 59 - 62 paise, down from 71 - 74 paise on
Monday and fast-forward maturing in October also closed lower
at 94 - 97 paise from 114 - 117 paise previously.

In cross-currency trades, the rupee dropped against the
pound sterling, the euro and the Japanese yen.

The domestic currency fell back against the pound to end
the day at Rs 75.00/02 per pound from last close of Rs
74.89/91 per pound and also declined against the single
European currency to Rs 61.28/30 from previous close of
Rs 61.15/17 per euro.

The rupee too tumbled against the Japanese yen to Rs
49.16/18 per 100 yen from overnight close of Rs 47.70/72 per
100 yen. PTI V.M.P.
RKM
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