Rupee tumbles by 64 paise to 47.92/93 against dollar

Mumbai, May 26 (PTI) The Indian rupee Tuesday tumbled by
64 paise to 47.92/93 against the US currency in tandem with
weak local stock markets on heavy month-end dollar demand from
importers and a stronger American unit overseas.

Dealers at the Interbank Foreign Exchange (forex) market
said oil refiners heavily bought dollar throughout the day for
their monthly import payments.

They said dollar's surge against major world currencies
coupled with extremely weak equity market weighed on the rupee
sentiment.

The domestic currency moved widely in the range of 47.40
and 47.93 after resuming lower at 47.43/44 a dollar from its
previous close.

The Indian benchmark Sensex Tuesday plunged by 324 points
or 2.33 per cent, ignoring Finance Minister Pranab Mukherjee's
comments on economic growth and fiscal consolidation.

The Asian indices also ended in the negative territory.

The local unit is expected to remain under pressure as
demand for dollar may increase at the month-end, they said.

The Reserve Bank of India (RBI) Tuesday fixed the
reference rate for the US dollar at Rs 47.63 and for the euro
at Rs 66.54.

Rupee premiums on the forward dollar declined due to
fresh receiving from exporters.

The benchmark six-month forward dollar premium payable in
October ended at 63-65 paise, down from 70-72 paise on Monday
and the far-forwards maturing in April also ended lower at
109-111 paise from 116-118 paise previously.

In cross-currency trade, the Indian rupee fell against
the pound sterling and the euro and the Japanese yen.

The domestic currency declined further against the pound
sterling to finish the day at Rs 75.90/92 per pound from the
yesterday's closing level of Rs 75.17/19 per pound and also
moved down against the euro to Rs 66.53/55 per euro from Rs
66.14/16 per euro previously.

It reacted downward against the Japanese yen to settle
the day at Rs 50.46/48 per 100 yen from Rs 49.71/73 per 100
yen previously. PTI RSU
RKM
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