 "Rupee ends weak as FM disappoints street")
The rupee ended weak on Thursday as there was disappointment in the streets over lack of concrete measures from the Finance Minister P Chidambaram to arrest the rupee's fall against the dollar. Besides that a fall in equities added to further woes. The rupee ended at Rs 57.99 on Thursday compared with previous close of Rs 57.79.
On Thursday Foreign Institutional Investors (FIIs) continued to pull out their investments from domestic markets which also dampened sentiments.
The rupee had opened at Rs 58.13 per dollar. During intra-day trades it touched a high of Rs 57.95 and a low of Rs 58.56. The rupee rupee had recovered a large part of its losses on Thursday due to dollar sales by corporate and exporters.
As per data from Securities and Exchange Board of India, FII sold $ 299.33 million on Thursday compared with $ 533.55 million on Wednesday.
The street had expected The Finance Minister P Chidambaram to announce measures to arrest the fall of the rupee against the dollar. However, those hopes did not materialise due to which the rupee ended weak against previous close.
"The market was looking for some concrete steps but there was nothing concrete announced by the finance minister, hence the sell-off," said Vikas Babu Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank. "At higher levels, however exporters came in to sell, helping the rupee recover quite a bit,” added Chittiprolu.
Meanwhile, Chidambaram said on Thursday that there was no need to panic about the recent fall in the rupee against the dollar.
According to him the rupee will find the correct level on its own.
According to Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai the rupee is expected to trade in the range of Rs 57.80 to Rs 58.50 per dollar on Friday.
On Thursday Foreign Institutional Investors (FIIs) continued to pull out their investments from domestic markets which also dampened sentiments.
The rupee had opened at Rs 58.13 per dollar. During intra-day trades it touched a high of Rs 57.95 and a low of Rs 58.56. The rupee rupee had recovered a large part of its losses on Thursday due to dollar sales by corporate and exporters.
As per data from Securities and Exchange Board of India, FII sold $ 299.33 million on Thursday compared with $ 533.55 million on Wednesday.
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The street had expected The Finance Minister P Chidambaram to announce measures to arrest the fall of the rupee against the dollar. However, those hopes did not materialise due to which the rupee ended weak against previous close.
"The market was looking for some concrete steps but there was nothing concrete announced by the finance minister, hence the sell-off," said Vikas Babu Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank. "At higher levels, however exporters came in to sell, helping the rupee recover quite a bit,” added Chittiprolu.
Meanwhile, Chidambaram said on Thursday that there was no need to panic about the recent fall in the rupee against the dollar.
According to him the rupee will find the correct level on its own.
According to Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai the rupee is expected to trade in the range of Rs 57.80 to Rs 58.50 per dollar on Friday.