Wednesday, 08 April 2015 04:00

Rupee weakens on dollar demand

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Rupee opened low at 61.61 against yesterday close of 61.56 and continued depreciation to 61.79 on dollar demand.

The domestic unit did not get cushion of less than expected Wholesale Price Index. WPI fell to 1.77% for Oct against 2.38% of Sept. The level is the lowest since Oct 2009. On Wednesday CPI and Industrial Production also beat analysts' forecast but it did not provide much support to rupee against strong dollar.

Dollar buying by State run Banks and the Central Bank might have brought sudden movement in rupee. Strong demand of dollar from importers also overshadowed foreign inflow effect on rupee.

FII flow in debt and equity market has remained continue. In this month, FII inflows in equities totaled at $1436.84 million as on 13th November 2014. Year to date basis, net capital inflows stood at $15127.36 million as on 13th November 2014.

Dollar index reached near to four year high at 88.07 and changed a little to 87.907 at 0307 IST. The dollar reached at seven year high against Yen at 116.40 today as Japan PM Abe may call a snap election next month in an effort to push through his reforms.

Today U.S. will release Retail and Core Retail Sales data which are expected to improve and may underpin dollar. Weakness in major currencies, Gold, Oil and other commodities are increasing investment in haven currency.

 

Read 961 times Last modified on Wednesday, 08 April 2015 04:04