INR slips to 8 week low

The rupee weakened in afternoon trade towards eight-week lows on Friday tracking the domestic share market which dropped more than 2 percent and on sharp overseas gains in the dollar versus majors.(read budget highlights).

The dollar index, a gauge of the U.S. unit's performance against majors, was up 0.7 percent.

FII'S have bought about $1 billion of stocks so far this month, taking net inflows in 2009 to nearly $6 billion, a key factor in its rise from a record low of 52.2 in March.

In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were quoting at 48.9350 and 48.93 respectively, with the total traded volume on the two exchanges at about $1.26 billion.

Indian rupee at 2 week low thanks to FII for taking out USD from indian markets

Indian National Rupee or poupularly known as INR touched two week low today at 48.88 / US $ since foreign investor's took out much investment which they made in indian markets over past couple of months due to which SENSEX ans Nifty also closed down today(read full report).

The details about the weak rupee is as follows (ovser past 2 days) :

The partially convertible rupee ended at 48.88/89 per dollar, 0.9 per cent below Tuesday's close of 48.45/46 per dollar. It is down 2 per cent so far this week. It hit a low of 48.9450 in intraday deals.

One-month offshore non-deliverable forwards were quoting at 48.97/49.07 per dollar in late Indian trade.

The dollar was steady while the yen climbed on Wednesday as uncertainty about the global economic outlook reined in investor risk-taking.

According to barclay's indian rupee will trade between 48.5 to 49.5 against a single US dollar.

INR falls 39 paise against US $

Indian rupee closed above the crucial 48 level against the dollar for the first time in five weeks in tandem with a sharp slide in local stocks, raising fears of capital outflow from equity.

Resuming lower at 47.84/85 a dollar, the domestic unit later moved in a range of 48.16 and 47.81 before ending the day at 48.13/14 against the dollar, cheaper by 39 paise from its last close of 47.74/75 a dollar.

Dealers at the Interbank Foreign Exchange (forex) market said continued capital outflows in the week weighed on rupee sentiment.

Foreign institutional investors pulled out nearly USD 193.60 million in the last two days. They were believed to be heavy sellers in equity today.

The Indian benchmark Sensex plunged by 435 points or 2.91 per cent following dramatic sell-off by foreign funds.

Meanwhile, the dollar, which was buoyant in the overseas market in the last few days, was little changed against the basket of currencies.

Rs v/s $ daily updates - may 09

This post gives daily INR v/s US$ updates for the month of may 2009 the comparison is at closing of the indian stock markets. and enteries are in cronological order -


PS - the order of each daily entry is as follow:

Rs v/s US$ | price of 1 us$ in INR | change wrto previous day | remarks/analysis

Enteries in red color show INR weakening and green color entery shows stronger INR wrto $

May 28/2009 - Rs v/s $ updates
RS v/s $ | 47.67 | -0.04 | Down(-0.04) paise

May 27/2009 - Rs v/s $ updates
RS v/s $ | 47.63 | -0.41 | Down(-0.41) paise

May 26/2009 - Rs v/s $ updates
RS v/s $ | 47.22 | -0.03 | Down(-0.03) paise

Rupee may return to strength by early to mid 2010

Worried over the sharp depreciation of the rupee? Here's some solace for you. Risk management consultancy major Mecklai Financial has predicted the rupee will begin to rise again by late 2009 and could return to strength by early to mid 2010.

In its latest research report, Mecklai has said that capital flows will take some time to return to 'normal'. However, "we believe that by late 2009, we should see investment flows resume, which should be the trigger for some modest strength in the rupee ...which could return to strength by early to mid 2010."

Even today "the silver lining for India is that the sharp depreciation of the rupee has rendered exports much more competitive. So, too, the dramatic fall in oil will make the trade balance much more manageable," the report says.

Of course, capital flows remain a major negative for the rupee. After having more than quadrupled to $108bn over the previous two years, capital inflows are expected to fall to $31bn in 2008-09. Portfolio flows are forecast to decrease by $10bn, as compared to an increase of $29bn in the previous fiscal, while borrowings are expected to fall from $41bn to $15bn. FDI has been the only bright spot this year, doubling to $10bn for Apr-Aug 2008; despite the crisis, the net figure should easily surpass last year's level of $15bn.

However, with equity prices having fallen 60% this year, as a result of which many, many companies are cheap even compared to their cash assets, and the credit market slowly on its way to normalcy, "we would expect capital flows to begin to show improvement by the second half of 2009," the report says.

The RBI's recent decision to reverse all restrictions it had placed on ECBs, NRI deposits, and FII flows through participatory notes is timely and will boost flows as and when the environment improves. Interestingly, one of the fallouts of this crisis is that "we will have a more liberal external account when the smoke clears."

Of course, the overall balance of payments is expected to be negative in fiscal 2009 and has already resulted in a substantial drawdown of reserves. However, in view of the factors listed above, "we believe fiscal 2010 should see a surplus of around $20bn, which should support a return to a modestly stronger rupee," the report says.

Rs v/s US $ - November 2008 - daily updates

Indian economy trends are very important for those who are into economic analysis in India, Indian National rupee popularly known as INR in international market is following a downward trend due to global financial turbulance. As volume of US dollars (USD) in international markets is on a decline so the value of US $ is growing up, well indian IT industrycan feel better to some extent and is the only industry which would be getting a plus from current market scenario.

The post would include (US$ v/$ rupee) daily trends the rate shown of Indian rupee would be as displayed at time of stock markets closure(mainly BSE and NSE) you can also see daily Stock market live rates and closing rates.

INR(Indian National rupee) v/s US$ November trends/updates are as follows:

format for display of rs v/s $ would be in following order:
(date RS v/s $ rate Daily trends updates Remarks with respect to US $)

(November 28,2008) | RS v/s $ | 49.85 | Up^0.12 | grew stronger by 12 paise/US $

(November 25,2008) | RS v/s $ | 50.09 | Down(-0.06) | weaker by 6 paise/US$

(November 24,2008) | RS v/s $ | 50.03 | Up^0.49 | grew stronger by 0.49 paise

(November 21,2008) | RS v/s $ | 50.52 | Down(-0.78) | weaker by 78 paise/US$

(November 20,2008) | RS v/s $ | 49.74 | Down(-0.06) | weaker by 06 paise/US$

(November 19,2008) | RS v/s $ | 49.68 | Down(-0.69) | weaker by 69 paise/US$

(November 18,2008) | RS v/s $ | 48.99 | Up^0.47 | grew stronger by 0.47 paise

(November 17,2008) | RS v/s $ | 49.46 | Up^0.67 | grew stronger by 0.67 paise

(November 14,2008) | RS v/s $ | 48.79 | - | No change wrto previous day

(November 13,2008) | RS v/s $ | 48.79 | Down(-1.20) | weaker by 120 paise/US$

(November 12,2008) | RS v/s $ | 47.59 | Down(-0.27) | weaker by 27 paise

(November 11,2008) | RS v/s $ | 47.32 | Up^0.44 | grew stronger by 0.44 paise

(November 7,2008) | RS v/s $ | 47.68 | Down(-0.50) | weaker by 50 paise

(November 6,2008) | RS v/s $ | 47.18 | Up^1.44 | grew stronger by 144 paise

(November 5,2008) | RS v/s $ | 48.62 | Up^0.34 | grew stronger by o.34 paise

(November 4,2008) | RS v/s $ | 48.96 | Up^0.29 | Rupee became stronger by 2%

(November 3,2008) | RS v/s $ | 49.25 |Up^0.00 | No change

Also see:
October 2008 Rs v/s US $ trends

Rs v/s US $ - Daily updates

Indian National rupee popularly known as INR in international market is following a downward trend due to global financial turbulance. As volume of US dollars (USD) in international markets is on a decline so the value of US $ is growing up, well indian IT industrycan feel better to some extent and is the only industry which would be getting a plus from current market scenario.

The post would include (US$ v/$ rupee) daily trends the rate shown of Indian rupee would be as displayed at time of stock markets closure(mainly BSE and NSE) you can also see daily Stock market live rates and closing rates.

INR(Indian National rupee) v/s US$ October trends/updates are as follows:

format for display of rs v/s $ would be in following order:
(date | RS v/s $ | rate | Daily trends updates)


(October 31,2008) | RS v/s $ | 49.77 | Down(-49.77)


(October 30,2008) | RS v/s $ | 49.67 | Up^0.21


(October 29,2008) | RS v/s $ | 50.09 | Down(-0.14)


(October 27,2008) | RS v/s $ | 49.95 | Down(-0.16)