Rupee continues to trade weaker
The rupee continues to trade weaker on Friday afternoon, although it seems to have recovered partly, and quoted at 49.83 against the dollar.
By ET Bureau |
MUMBAI: The rupee continues to trade weaker on Friday afternoon, although it seems to have recovered partly, and quoted at 49.83 against the dollar.
Dealers said the weak Asian stock markets are weighing on the local unit, prompting fears that capital outflows from the markets would restart with greater vigour in the coming days. Dollar strength in global currency markets also acted as a dampener.
Bond markets are closed due to the RBI employees strike. Volumes in the rupee market were also low, due to the strike.
"Although the outflows from the markets are not very huge, the sentiment for Asian currencies has taken a beating," says Ashish Parthasarthy, deputy treasurer, HDFC Bank. "Its the negative sentiment overall that is putting pressure on the rupee," he said. BSE Sensex was down 2% at 8860 at 3pm.
The dollar and the yen rose on Friday as growing global economic woes and worries about recession caused investors to flee to the safety of the greenback.
The local unit is now posed for the biggest weekly loss of the year. The near 50-mark is an 11-week low versus the dollar and the BSE Sensex was poised for a 7.6% weekly drop, the benchmark's largest slide since December. Interbank call market is also closed.
Dealers said the weak Asian stock markets are weighing on the local unit, prompting fears that capital outflows from the markets would restart with greater vigour in the coming days. Dollar strength in global currency markets also acted as a dampener.
Bond markets are closed due to the RBI employees strike. Volumes in the rupee market were also low, due to the strike.
"Although the outflows from the markets are not very huge, the sentiment for Asian currencies has taken a beating," says Ashish Parthasarthy, deputy treasurer, HDFC Bank. "Its the negative sentiment overall that is putting pressure on the rupee," he said. BSE Sensex was down 2% at 8860 at 3pm.
The dollar and the yen rose on Friday as growing global economic woes and worries about recession caused investors to flee to the safety of the greenback.
The local unit is now posed for the biggest weekly loss of the year. The near 50-mark is an 11-week low versus the dollar and the BSE Sensex was poised for a 7.6% weekly drop, the benchmark's largest slide since December. Interbank call market is also closed.
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