Press Esc to close

Rupee at record closing low; worst week in nearly 2 years

Mumbai, Aug 2, 2013, Reuters: 19:36 IST
Reuters photo. A private money trader counts Rupee notes at a shop in Mumbai August 1, 2013.
The rupee fell to a record closing low on Friday, posting its worst week in 22 months, raising concerns the RBI is losing the battle to prop up the currency while the government has yet to take any meaningful measures to bring in inflows.

The rupee weakened ahead of key U.S. employment data, which will help shape expectations about when the Federal Reserve will start tapering down its monetary stimulus.

The currency fell 3.4 percent this week, and is below the levels at which it was trading on July 15 when the Reserve Bank of India unveiled its cash tightening steps to defend the currency.

Investors have started questioning the central bank's resolve after Governor Duvvuri Subbarao said this week it would roll back measures to defend the rupee if the currency stabilises, while the government has yet to take steps such as a sale of overseas bonds to ensure real money flows.

The RBI has, instead, been relying on interventions to support the rupee. Traders said the central bank likely intervened again on Friday as the rupee came within a whisker of its record low of 61.21 seen on July 8.

"The RBI is sprinkling water. It should intervene in a massive way for a day or two to support the currency and bring it back to a comfortable level to hit speculators hard," said K.N. Dey, a senior forex consultant.

The partially convertible rupee closed at 61.10/11 per dollar compared with 60.43/44 on Thursday.

Investors will focus on dollar movements after the U.S. jobs report. The monsoon session of parliament is due to start on Monday, with important legislation such as a food security bill pending.

In the offshore non-deliverable forwards, the one-month contract was at 61.66, while the three-month was at 62.56.

In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed around 61.45 with a total traded volume of $2.6 billion.

Go to Top

More from this section
Photo Gallery
Bollywood actress and BJP MP Hema Malini performs during 'Braj Holi Raso Utsav' in Mathura...

Bollywood actress and BJP MP Hema Malini performs during 'Braj Holi Raso Utsav' in Mathura...

Children play with 'gulal' ahead of Holi festival in Kolkata on Sunday...

Children play with 'gulal' ahead of Holi festival in Kolkata on Sunday...

The Indian cricket team pose for a photo with their trophy after beating South Africa in the...

The Indian cricket team pose for a photo with their trophy after beating South Africa in the...

File Photo of Bollywood superstar Sridevi Kapoor, receiving Padma Shri from the then President...

File Photo of Bollywood superstar Sridevi Kapoor, receiving Padma Shri from the then President...

A bird feeds on the seasonal flowers at Dudhnai in Assam states Goalpara District on...

A bird feeds on the seasonal flowers at Dudhnai in Assam states Goalpara District on...

Canadian short-track speed skater Kim Boutin leads team Canada into the Olympic stadium...

Canadian short-track speed skater Kim Boutin leads team Canada into the Olympic stadium...

Sridevi fans wait outside her residence at Lokhandwala Complex, in Andheri, north-west, Mumbai...

Sridevi fans wait outside her residence at Lokhandwala Complex, in Andheri, north-west, Mumbai...

Men and women play 'Lathmaar Holi' on the occasion of Fag Mahoutsav at historical Govind Dev Ji...

Men and women play 'Lathmaar Holi' on the occasion of Fag Mahoutsav at historical Govind Dev Ji...

Students take a selfie during Holi celebration in Visva-Bharati University Campus at Sriniketan...

Students take a selfie during Holi celebration in Visva-Bharati University Campus at Sriniketan...

People celebrate Latthmaar Holi in Barsana near Mathura on Saturday...

People celebrate Latthmaar Holi in Barsana near Mathura on Saturday...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.