Rupee at 51.73 against dollar
MUMBAI: Fears about further capital outflows from India on back of a sovereign downgrade and lower corporate earnings continue to weigh down on
the rupee, pulling it down to another all time low of 51.73 against the dollar at 12 noon.
It had ended at 51.45 level on Friday. Dealers say Asian stocks continuing to lose way and concerns of India trade deficit rising further is also weakening the outlook for the rupee. BSE sensex was trading lower 2.3% at 8690 at 12 noon.
“We are still betting on some form of aggressive RBI intervention curtailing extreme depreciation pressures and subsequently bring the USD/INR pair towards our near-term equilibrium range of 52,” says Abheek Barua, chief economist at HDFC Bank in a note. “In short a break beyond 52 could just be temporary,” he added. - Source : ET