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Rupee falls for ninth week, closes in on record low

Last Updated 05 July 2013, 17:26 IST

The rupee fell on Friday to approach a record low on sustained dollar demand from importers, forcing the central bank to intervene to support the currency, according to traders.

The Reserve Bank of India was cited selling dollars via state-run banks after the rupee fell to the day's low of 60.59, not far from its life low of 60.76 touched on June 26.

However, the central bank's intervention has not been strong during the current bout of rupee weakness, with Governor Duvvuri Subbarao's comments on Thursday about the RBI not targeting any particular exchange rate also deepening the uncertainty.

In the near-term, investors will closely watch the U.S. monthly employment data due out later in the day. Analysts expect US job growth to have slowed in June, but not enough to shift the Federal Reserve away from expectations that it will start scaling back its massive monetary stimulus later this year.

Markets are also awaiting potential measures from the government to open up more sectors for foreign investment in a bid to narrow a record high current account deficit that has now helped send the rupee to a ninth consecutive weekly fall.

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(Published 05 July 2013, 17:26 IST)

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