Mumbai: When the whole world was busy celebrating the New Year, the stock exchange was fretting over the Rupee as it registered its worst single day drop in a fortnight. The Rupee fell by 32 paise to close at 63.35 against the Dollar.
Dealers said increased demand for the American unit from importers and a lower opening in the domestic equity market weighed on the rupee. On Wednesday, the rupee had gained 35 paise against the greenback but lost ground on an annual basis for the fourth year in a row. The rupee on Thursday resumed lower at 63.17, which was also the day’s high, as against yesterday’s closing level of 63.03 at the Interbank Foreign Exchange (Forex) market.
Rise in demand for Dollar affects the Rupee
Demand for the greenback from banks and importers and little support from local share market, where benchmark indices ended almost flat, led to rupee snapping a two-session uptrend.
The rupee depreciated by 123 paise or 1.99 per cent, in calendar year 2014. It had closed at 61.80 against dollar in 2013. After markets closed, government data showed the growth rate of eight core sector industries rose to five-month high of 6.7 per cent in November on the back of better output in coal, refinery products, electricity and cement.
Rupee Declines against the Dollar for the 4th year in a row
The rupee depreciated by 123 paise or 1.99 per cent, in calendar year 2014. It had depreciated by over 11 per cent in 2013 and by more than 18 per cent in 2011. The decline was about 3 per cent in 2012.
Indicating the strength of dollar in overseas markets, the closely-tracked dollar index was up by 0.04% against a basket of six major global rivals. In New York, the dollar ended 2014 with a gain of nearly 13% against the late yesterday. Currency markets were closed today on account of New Year holiday.
Meanwhile, the Indian benchmark S&P BSE Sensex today firmed up by 95.88 points, or 0.35 per cent.