Rupee registers its biggest single session loss in 2 weeks
01 November 2011
The Indian rupee closed at 49.27/28 per dollar today, down 1.2 per cent from its previous close of 48.69/70, registering the biggest single day fall in nearly two weeks.
The rupee was hammered by concerns that Europe's debt crisis may worsen amidst an erosion in global risk appetite that affected equities and the single European currency.
The rupee had moved in a wide band of 48.8300 to 49.3150, in intraday trading. The Reserve Bank of India, however, did not intervene at the lower levels.
The RBI would have intervened to offer support to the Indian unit had there been volatile movements during trading in the foreign exchange market.
The euro fell more than one per cent against the US and Japanese currencies after Greece's call for a referendum over the government's austerity plans.
The euro was at $1.3702 at end of rupee trade, sharply down from $1.4001 on Monday, while the dollar index against six major currencies was at 77.273 points against 75.982 points in the previous day.
The one-month onshore forward premium on the rupee was at 27.50 points, down from 26.25 on Monday, the three-month premium was at 66 points against 68.50 and the one-year premium was at 161 points, from 169.
The one-month offshore non-deliverable forward contracts were quoted at 49.59. In the currency futures market, near-month dollar-rupee contracts on the National Stock Exchange and the United Stock Exchange ended at a uniform 49.5175 while on the MCX-SX it settled at 49.5225.