Mumbai, May, 10: Amid falling domestic equity market and weak demand abroad has pushed down Indian rupees to 53.85 yesterday. The rupee has fallen by 1.13% to 53.85 on Wednesday.
This was the biggest fall in five months for the rupees against dollar. Earlier, on last Friday RBI, the apex bank of the country, has intervened by selling dollar through public sector banks.
Early Thursday, it rose after the RBI fixed intra-day open position limits at five times the net overnight open position limit for rupee trading to curb excessive position-taking.
Nonetheless, the demand -supply mismatch in the forex market continues with strong demand for dollars from oil majors and foreign institutional investors (FIIs).
In the past two days, FIIs have sold nearly Rs 10 billion of domestic equities despite the implementation of GAAR postponed for next year.
With demand far outstripping supply, the RBI continued to try and soothe the markets by supplying dollars on Wednesday. Traders reported that state-owned banks were seen selling the dollar, presumably on behalf of the RBI near 53.80/$ levels.
As the fall in rupees would continues, price of oil will goes up in domestic market. RBI is taking other measures to control the outflow of dollar. It has stringent the norms of FCNR (B) yesterday after increasing the interest by 125 bps on it.
Mumbai, May, 10: Amid falling domestic equity market and weak demand abroad has pushed down Indian rupees to 53.85 yesterday. The rupee has fallen by 1.13% to 53.85 on Wednesday.This was the biggest fall in five months for the rupees against dollar.
Earlier, on last Friday RBI, the apex bank of the country, has intervened by selling dollar through public sector banks. Early Thursday, it rose after the RBI fixed intra-day open position limits at five times the net overnight open position limit for rupee trading to curb excessive position-taking.
Nonetheless, the demand -supply mismatch in the forex market continues with strong demand for dollars from oil majors and foreign institutional investors (FIIs).
In the past two days, FIIs have sold nearly Rs 10 billion of domestic equities despite the implementation of GAAR postponed for next year.With demand far outstripping supply, the RBI continued to try and soothe the markets by supplying dollars on Wednesday. Traders reported that state-owned banks were seen selling the dollar, presumably on behalf of the RBI near 53.80/$ levels.
As the fall in rupees would continues, price of oil will goes up in domestic market. RBI is taking other measures to control the outflow of dollar. It has stringent the norms of FCNR (B) yesterday after increasing the interest by 125 bps on it.
