Rupee down 20 paise vs dollar, stocks gain
02 Jan 2012
The rupee lost 20 paise to close at a fresh two-week low of 53.30/31 against the dollar, ending the first day trading of the new year on a subdued note even as the stock markets gained following the finance ministry's announcement opening the stock market to individual investors overseas.
The rupee was hammered by sustained dollar demand from importers, foreign exchange dealers said. Concerns over the government's widening fiscal deficit also weighed on the rupee sentiment, dealers said.
On the interbank foreign exchange market, the rupee moved between 53.12 and 53.40 before closing at 53.30/31 down 20 paise (0.38 per cent) from the previous close.
In Indian unit is down Rs8.4, or 18.79 per cent in one year.
The benchmark Bombay Stock Exchange index, Sensex, ended up 63 points (0.4 per cent) at 15.517.92, marking its first gain in five days. The index swung between gains and losses at least 22 times in volatile trading earlier in the day.
The Sensex's slight recovery comes after record fall in the market, which saw the index plunge 25 per cent in 2011. It was also the worst performer among the world's biggest markets hit by falling rupee value and a hike in interest rates.
