Rupee rebounds after hitting historic low
In seven straight sessions, the rupee has lost a total 217 paise or 4.34%. RBI's role in forex markets could not be ascertained.
By PTI | Updated:
MUMBAI: The US dollar ended higher against the rupee at Rs 52.29/30 per dollar and the Pound Sterling also finished higher at Rs 81.93/95 per pound at the close of the Interbank Foreign Exchange market (Forex) here on Tuesday.
The rupee today hit its all-time low of 52.73 intra day against the US dollar on sustained demand for the US currency from banks and importers, mainly oil refiners, amid signs of further capital outflows.
Later in the day, the rupee managed to recover some lost ground amid speculations of Reserve Bank's intervention to arrest the slide. RBI's role in forex markets could not be ascertained.
Meanwhile, Finance Minister Pranab Mukherjee said RBI's intervention in the forex market will not arrest the slide as FIIs' pullout and global reasons were behind the depreciation.
"RBI intervention (in the forex market) will not help," he told reporters.
Reserve Bank Governor D Subbarao while attributing the sharp decline in rupee to external factors said the central bank has not yet decided on intervening in the forex market to arrest the slide in the local currency.
"Our policy is that if the macro-economic situation is impacted due to the exchange rate fluctuation or undue volatility we will have to intervene. We are yet to decide whether to intervene or not at the moment," Subbarao said.
In seven straight sessions, the rupee has lost a total 217 paise or 4.34 per cent.
At the Interbank Foreign Exchange (Forex) market, the local currency opened bearish at 52.36/37 immediately touched its life-time low of 52.73.
Dealers said persistent capital outflows aided the rupee downtrend as Foreign Institutional Investors (FIIs) pulled out $460.40 million in five days since November 15.
The rupee today hit its all-time low of 52.73 intra day against the US dollar on sustained demand for the US currency from banks and importers, mainly oil refiners, amid signs of further capital outflows.
Later in the day, the rupee managed to recover some lost ground amid speculations of Reserve Bank's intervention to arrest the slide. RBI's role in forex markets could not be ascertained.
Meanwhile, Finance Minister Pranab Mukherjee said RBI's intervention in the forex market will not arrest the slide as FIIs' pullout and global reasons were behind the depreciation.
"RBI intervention (in the forex market) will not help," he told reporters.
Reserve Bank Governor D Subbarao while attributing the sharp decline in rupee to external factors said the central bank has not yet decided on intervening in the forex market to arrest the slide in the local currency.
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"Our policy is that if the macro-economic situation is impacted due to the exchange rate fluctuation or undue volatility we will have to intervene. We are yet to decide whether to intervene or not at the moment," Subbarao said.
In seven straight sessions, the rupee has lost a total 217 paise or 4.34 per cent.
At the Interbank Foreign Exchange (Forex) market, the local currency opened bearish at 52.36/37 immediately touched its life-time low of 52.73.
Dealers said persistent capital outflows aided the rupee downtrend as Foreign Institutional Investors (FIIs) pulled out $460.40 million in five days since November 15.
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