Rupee tumbles versus dollar in the open market


Forex Research - Open Market Comments

The US currency continued to post gains versus dollar in the kerb dealings today amid demand of dollar remained up significantly. The greenback commenced new dayís trading at Rs.79/20, rose 0/20 paisas and was trading at Rs.79/40 at close of markets on Tuesday. Thus, rupee closed the day on a sluggish note versus dollar in the kerb dealings. In the international, the dollar rose to 92.49 yen from 91.73 yen, after touching 92.75, the highest level since Jan. 8. It climbed to $1.4212 versus the pound from $1.4298, and advanced to 1.1740 Swiss francs from 1.1596.

The euro fell to a 10-week low against the dollar after Moodyís Investors Service said it may downgrade a number of banks with units in Eastern Europe, adding to concern financial turmoil in the region is worsening.

The euro also weakened for a second day against the yen on speculation its recent declines triggered the execution of automatic sell orders. The yen dropped to a five-week low against the dollar after Japanís Finance Minister Shoichi Nakagawa said today he would resign after budget bills are passed in the nationís parliament.

According to The News, the value of dollar against rupee in the inter-bank today jumped up by paisa 29 breaching the Rs80 marks. Forex market dealers said that dollar against rupee surged by paisa 29 and it was being sold at Rs80.05 and bought at Rs80.