Sustained heavy Dollar demand from corporates and importers sent the Rupee hurtling down against the US currency on Friday, as the Interbank Foreign Exchange (FOREX) market remained concerned over rising global oil prices.
“The Rupee ended at Rs 45.7800/7850 per Dollar, a whopping ten paise decline from Thursday's finish of Rs 45.6750/6850 after a fresh wave of Dollar short-covering by banks and corporates exerted further severe pressure on the Rupee,” dealers said.
The Indian unit had earlier depreciated by eight paise in the last two consecutive sessions.
Crude oil prices ruled above $ 34 a barrel on renewed tensions in West Asia as Iraq accused Kuwait of stealing oil and the US threatened to use military force to defend Kuwait.
The Rupee opened on a distinctly weak note at Rs 45.70/71 and dipped to intraday lows of Rs 45.78/79, before settling at Rs 45.7800/7850 at the close, mostly on a south-bound journey.
"Nervousness gripped the FOREX spot market and put the Rupee under tremendous pressure as banks, corporates and importers rushed to cover Dollar positions," a FOREX dealer said.
"Comments from a senior Reserve Bank of India (RBI) official that the bank would meet the extra Dollar demand arising from the recent oil price rise, failed to stem the rupee slide,” he added.
Bureau Report
