Rupee, bourse head further south

Thursday, 18 July 2013 00:09 - - {{hitsCtrl.values.hits}}

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The rupee fell 0.17% on Wednesday to its lowest level in 10 months on importer dollar demand and in the absence of Central Bank intervention. The rupee fell to 131.70 in intraday trading before closing at 131.60/65 to the dollar, its lowest since 19 September and weaker than Tuesday’s close of 131.45/50. “The rupee was weaker on importer dollar demand. Late in the day, we saw some exporter conversions which eased the morning pressure,” said a currency dealer. The rupee fell 3.1% in June as foreign investors pulled out of Treasury bonds, lured by a rise in US Treasury yields on concern the Federal Reserve would start trimming its stimulus program. Meanwhile, shares fell for a fourth straight session on Wednesday to their one-week low, led by oil palm and telecommunications companies, and the turnover slumped to a seven-month low amid concerns over a falling rupee. The main share index ended 0.42%, or 25.30 points, weaker at 5,982.35, its lowest since 9 July. The index hit a near 10-week low on 9 July on concerns over the rupee’s weakening trend and possible foreign outflows. Turnover was Rs. 191.7 million ($ 1.46 million), provisional data showed, the lowest since 24 December and well below this year’s daily average of Rs. 964.4 million. Shares in oil palm cultivator Good Hope Plc fell 21.42% to Rs. 1,100 in thin trade, while leading mobile phone operator Dialog Axiata fell 2.3% to Rs. 8.50.

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