- USDINR Update
- The partially convertible rupee ended at Rs 47.27 per dollar, depreciating about 2% for the week. The rupee weakened as the euro’s weakness triggered a bout of dollar buying by importers, but a stronger performance of the stock markets limited the local currency’s losses.
- Earlier on Tuesday, the rupee fell the most in at least 15 months, tracking declines in Asian stocks, as weaker- than-expected manufacturing data from China spurred concern that Europe’s financial crisis could derail a nascent global economic recovery.
- The rupee closed 1.7% lower at 47.155 against the dollar on Tuesday, the biggest decline since 17 February 2009. It slumped 4.3% in May, the worst performance among Asian currencies after South Korea’s won.
- The euro traded close to a four-year low as the euro zone’s financial problems weighed on sentiment and the dollar rose because of expectations of a strong US employment report.
- The rupee had fallen 4.3% in May on foreign fund outflows of $2 billion in the month. Foreigners are still net buyers of $4.5 billion worth of shares so far in 2010.
- The rupee is expected to trade in the 46.75 to 47.00 range during the next week considering no major disturbance in the Euro region and local equity markets remain stable.
Author name:Abhijeet Ahir