India rupee falls for 2nd day; stock losses hurt

Fri Nov 9, 2012 5:20pm IST

Related Topics

* Rupee ends at 54.75/76 per dlr vs 54.36/37 on Thursday

* Indian shares fall for second day, end down 0.86 percent

* Rupee falls for fourth week in five

By Subhadip Sircar

MUMBAI, Nov 9 (Reuters) - The Indian rupee fell for a second session on Friday, as the euro gave up its early gains and local stocks fell after the country's largest lender reported earnings below expectations.

The local unit, which traded in a tight range for most of the session, fell after State Bank of India posted its smallest profit increase t h is year, sending local stocks sharply down.

India's main stock index ended 0.86 percent lower.

The rupee fell for a second straight week, marking its fourth week of decline in five, highlighting its vulnerability to global uncertainties after the euphoria over economic reforms ebbed.

Sentiment on the Indian rupee has turned bearish once again after some signs of optimism in the last two months, a Reuters poll of currency strategists showed.

"The rupee likely to weaken further on global dollar strength and may touch 55.20 or 55.85 in short term," said Hari Chandramgathan, a senior foreign exchange dealer with Federal Bank.

He, however, said the rupee may find some support around 55 to a dollar.

The partially convertible rupee closed at 54.75/76 p er dollar, 0.7 p ercent weaker than its previous close of 54.36/37. For the week, it ended 1.7 p e rcent lower.

The euro extended losses to hit a two-month low against the dollar and a fresh one-month trough versus the yen on Friday as investors sold the single currency on grim economic prospects and uncertainty over aid to Greece and Spain.

Dealers, however, hope for some near-term dollar inflows after the government allowed companies to borrow overseas to bid for telecom spectrum at an auction t h at begins Monday.

Factory data for September as well as headline inflation data for October next week will be watched for cues.

In the offshore non-deliverable forwards segment, the one-month contract was at 55.01 w hile the three-month was at 55.57.

In the currency futures market, the most-traded near-month dollar/rupee contract on the National Stock Exchange and the MCX-SX closed around 54.82 w i th a total traded volume of $4.6 bi l lion. (Editing by Jijo Jacob)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Pricing Controls

REUTERS SHOWCASE

India-China Relations

India-China Relations

India and China look to put knotty relations on new footing.  Full Article 

Importing Iron Ore

Importing Iron Ore

As mining curbs bite, India offers market to glut-hit iron ore.  Full Article 

Lower Output

Lower Output

IOC cuts refinery output as rains hit fuel demand - source.  Full Article 

Drug Approval

Drug Approval

Epirus, Ranbaxy win India approval for arthritis drug copy.  Full Article 

Farming and Technology

Farming and Technology

Climate smart farmers get tech savvy to save India's bread basket.  Full Article 

Rajan Speaks

Rajan Speaks

RBI chief Rajan says limiting reliance on foreign debt.  Full Article 

India-Vietnam Ties

India-Vietnam Ties

India tightens Vietnam defence, oil ties ahead of China Xi's visit.  Full Article 

Debt & Equity Deal

Debt & Equity Deal

KKR to lend $175 million to GMR Infrastructure - source.  Full Article 

Preparing for IPO

Preparing for IPO

Alibaba boosts IPO as demand strengthens.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage