Rupee falls for 5th day in a row
Source: The Sangai Express / Press Trust of India
Mumbai, June 22 2012:
The rupee on Friday fell to all-time low of 57.37 intra-day against dollar on intense demand for the U.S.currency, particularly from oil importers, but ended at 57.15, recording this year's biggest fall of 85 paise in a day.
Dealers said RBI action was missing in forex market even as rupee continued its free-fall for the fifth day in a row.
They also said the rupee breached the 57 level due to strong dollar demand from oil importers in the wake of crude falling to near 18-month low of $90 a barrel levels.
At the Interbank Foreign Exchange (Forex) market, the domestic unit opened lower at 56.80.Later, it plunged to a life-time low of 57.31 before recovering some ground to end at 57.15, a fall of 85 paise or 1.51 per cent from last close of 56.30 .
As rupee touched its record low of 57.37 a dollar, Finance Secretary R.S.Gujral in New Delhi said, "Government (is taking) action in terms of supportive measures for ensuring higher inflows of foreign exchange ...
government is conscious of (situation) and is taking appropriate action." Meanwhile, the Reserve Bank directed state-owned oil firms to buy half of their dollar requirement for oil imports from the State Bank of India.
"RBI letter (asking oil marketing companies to buy U.S.currency from a single public sector bank) has come to the government.
We are in correspondence with the oil companies to make sure they comply with the directive," Oil Secretary G.C.Chaturvedi told reporters.