Rupee weakens to a fresh 30-month closing low

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Mumbai, Feb 25 (IANS) The Indian rupee weakened by 15 paise on Thursday to touch its new 30-month closing low.

The rupee closed at 68.71 against the US dollar at a level which was last seen during late August, 2013.

It weakened by 15 paise to 68.71 to a US dollar from its previous close of 68.56 to a greenback.

During the intra-day trade rupee value dwindelled to 68.79 to a US dollar from its previous close of 68.56 to a greenback.

“Indian rupee opened marginally higher against the US dollar, thanks to risk-on sentiments across Asian markets. However, demand from importers brought it back above 68.50 levels on spot, closing at 68.71,” Anindya Banerjee, associate vice president for currency derivatives with Kotak Securities, told IANS.

“Central bank would remain active till the union budget, as they trying to prevent a blowback of a weak currency on bond investment from FIIs (foreign institutional investors).”

The weakness in the rupee value indicates the massive outflow of foreign funds from the Indian equity and debt markets.

The foreign institutional investors (FIIs) were net sellers in the equity markets during the day’s trade. Data with stock exchanges showed that FIIs divested Rs.1,465.68 crore.

In addition, the slide in rupee’s value even dented the equity indices.

The weakness in rupee value led to the barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) to close the day’s trade down 113 points, or 0.49 percent.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) ended the day’s trade in the red — lower by 48.10 points, or 0.69 percent, at 6,970.60 points.

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