Rupee threatens to breach the 50 mark again
Rupee is now poised for the biggest weekly loss of the year. The near 50-mark is an 11-week low versus the dollar. Where the rupee comes from, and goes
By ET Bureau |
MUMBAI: The rupee once again dipped on Friday morning against the dollar, threatening to breach the 50 mark again. It was quoting at 49.97 against the dollar at 12 noon.
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. Bond markets are closed due to the RBI strike. Volumes in the rupee market were also low.
"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. "It���s the negative sentiment overall that is putting pressure on the rupee," he said. BSE Sensex was down 2% at 8854 at 12 noon.
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. Bond markets are closed due to the RBI strike. Volumes in the rupee market were also low.
"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. "It���s the negative sentiment overall that is putting pressure on the rupee," he said. BSE Sensex was down 2% at 8854 at 12 noon.
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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