Rupee plummets to 57.32 Vs $ as oil firms pursue dollar window
22 Jun 2012
The rupee hit a fresh low of 57.32 a dollar as the Indian unit continued its free-fall hammered by strong demand for the US currency from importers and increased capital outflows over market concerns.
Heavy buying by foreign banks boosted the dollar even as the Reserve Bank of India failed so far to implement its decision to open separate dollar window for oil importers.
The RBI and the oil companies, meanwhile, are reported to have discussed the issue of making 50 per cent of dollar purchases via a single state-owned bank, to lessen rupee volatility.
The rupee, which opened lower at Rs56.80 against the dollar on the inter-bank foreign exchange market today, hit an intra-day low of 57.32. The Indian unit made a partial recovery, rising to 56.76 before slipping again to close at 56.30 a dollar.
The rupee also registered the biggest one-day loss in its five-day loosing streak, tumbling Re1 (over 1.6 per cent) from the previous close of 57.32 a dollar.
The rupee has shed nearly 3 per cent against the dollar so far during the week, its biggest weekly fall since 23 September.
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