The rupee hit a new low of 54.60 against the dollar in intra-day trade on Thursday as dollar continued to firm up against Asian currencies. However, support from the central bank and profit booking by exporters helped the currency close at 54.49—one paise stronger than Wednesday’s close. The rupee opened strong on hopes that the central bank or the government would announce some measures to support the rupee. However, with no announcement forthcoming the currency began to weaken in the second half. Although global stocks were somewhat steady, gloomy forecasts by analysts that euro would be in trouble if Greece ejected from the euro zone kept the dollar firm.
Dealers said that the central bank continued with its intervention but failed to check the slide. Forex dealers said that with the currency crossing its earlier bottom it was difficult to forecast the next support level. One positive development for the rupee was that the demand for gold imports appears to be easing.
Although some reports said that a weaker currency had its advantages by curbing import consumption, industry is worried that it will do serious damage to the country’s fundamentals.
Dealers said that the central bank continued with its intervention but failed to check the slide. Forex dealers said that with the currency crossing its earlier bottom it was difficult to forecast the next support level. One positive development for the rupee was that the demand for gold imports appears to be easing.
Although some reports said that a weaker currency had its advantages by curbing import consumption, industry is worried that it will do serious damage to the country’s fundamentals.
No comments:
Post a Comment