Rupee ends at all-time low of 50.02/03 a dollar

Mumbai, Nov 19 (PTI) The Indian rupee Wednesday closed at
its all-time low of 50.02/03 against the greenback after
losing 35 paise on relentless capital outflows, sustained
demand for US dollar and weak equity markets.

The domestic unit had first breached the psychologically
crucial 50-level nearly a month back on October 24. The rupee
which has been on losing-spree for the past two days has
fallen by a hefty 101 paise or 2.06 per cent.

However, the loss is a mind-boggling Rs 10.61, or 26.92
per cent, since January this year.

Rupee's continuing weakness is in sharp contract to its
gaining strength -- to the level of below 40-- barely a year
ago. Riding on strong capital inflows, the key driver of the
local currency, it had closed at 39.41/4 December 31, 2007.

However, the global scenario has changed since then and
rupee started weakening after capital begun flowing out
following the breaking out of the global economic crisis.

Foreign Institutional Investors have pulled out nearly
USD 13 billion so far in the current calendar year. On other
hand, they had pumped in more than USD 17 billion in 2007.

Dealers in foreign exchange said there was strong demand
for the US currency Wednesday from oil refiners for their
import payments against very little dollar sales.

Dollar supply was scarce for the past one year or so, it
has been further squeezed ever since the economic crisis
emerged in the US.

Though dollar has been on a declining trend against its
major rivals, experts were baffled at its appreciation even
took a heavy toll on US economy.

The domestic currency moved in a wide range between
49.54 and 50.04 during the day after early signs of a recovery
in sync with an initial surge in equity markets on fresh hopes
of further monetary measures by the central bank.

Meanwhile, Indian benchmark today fell by another 163
points or 1.83 per cent, extending the losses to sixth day in
a row. In six days, the BSE barometer had lose over 1,700
points.

The Indian unit was steady around its previous close of
49.67/69 a dollar in the initial stages.

The RBI fixed the reference rate for dollar at Rs 49.74
and for the single European currency at Rs 62.78.

The rupee premiums on forward dollar ended lower on
fresh receiving by exporters.

The benchmark six-month forward dollar premium payable
in April ended at 58 - 61 paise, down from 61 - 64 paise on
Tuesday and far-forward maturing in October finished lower at
85 - 88 paise from 90-93 paise previously.

In cross-currency trades, the rupee remained weak and
moved down further against the pound sterling and the euro
while edged up against the Japanese Yen.

The domestic currency fell further against the pound to
end the day at Rs 75.24/26 per pound from last close of Rs
74.60/62 per pound and also dropped against the single
European unit to Rs 63.14/16 per euro from overnight close of
Rs 62.65/67 per euro.

It, however, inched up against the Japanese Yen to Rs
51.65/67 per 100 yen from previous close of Rs 51.67/69 per
100 Yen.