Rupee plunges by 30 paise to 55.51 on dollar buying

Rupee plunges by 30 paise to 55.51 on dollar buying

MUMBAI, NOV 23: 

The rupee slipped to more than a two-month low of 55.53 against the dollar on persistent dollar buying by oil importers.

The Indian unit today opened almost flat at 55.20 from Thursday’s close of 55.21 against the dollar due to a steady euro and flat domestic equity markets.

“The rupee further weakened from the morning trade on large dollar buying by importers. The Reserve Bank of India has intervened around 55.50 levels,” said a chief dealer of a public sector bank.

Experts expect the rupee downside to continue on the back of rising commodity prices, inflation and oil companies’ persistent dollar buying.

Investors and traders will closely watch the developments in the winter session of Parliament for further impact on the currency.

At 1.40 p.m., the rupee was trading at 55.41 to the dollar.

Call rates, G-Secs

Amid less demand and supply, the interbank call rates opened flat from its previous close of 8.10 per cent on Thursday. It moved slightly lower to 8.05 per cent in the early trade.

The 10-year benchmark 8.15 per cent government security, which matures in 2022, was trading almost flat at Rs 99.50 from Thursday's close of Rs 99.49, while the yields remained unchanged at 8.22 per cent.

Keywords: rupee, forex, foreign exchange, dollar, rupee vs dollar, inflation, call rates, government securities