Dollar Exchange rate hits 134

Thursday, 28 June 2012 02:06 -     - {{hitsCtrl.values.hits}}

Reuters: The Rupee hit a record low of 134.10 to the dollar on Wednesday on importer demand for the US currency, sparked by worries it will weaken further after banks started quoting spot prices again. The rupee closed at 133.90/134.00 to the dollar, down from its Friday’s close of 132.80/133.00, extending its fall to 1.6% since June 18.

Several banks had stopped quoting spot rates for the rupee in the previous two sessions after what dealers said was a request by the central bank not to trade above 133.00 in a bid to halt a months-long slide. On Wednesday, several banks quoted spot prices around the rupee’s previous record-low level of 133.60, hit on June 12, dealers said.

“No pressure from the central bank today and the highest deal was done at 134.10 for spot,” a currency dealer said on condition of anonymity, adding that there was heavy importer demand for dollars.

The rupee has lost nearly 18% of its value since November, when the government allowed a 3% devaluation.