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.

Rupee turns stronger gains 52 paise v/s US $

The rupee had fallen to a one-month low of 49.28 against the dollar in early trade after the scandal in India's fourth-largest software exporter Satyam Computer sparked fears about capital outflows.

Resuming weaker at 49.20/21 a dollar from its previous close of 48.80/81 a dollar, the rupee later fluctuated between 48.28 and 49.28 during the day, partly influenced by movements in local stocks.

Dealers at the Interbank Foreign Exchange (forex) market said foreign and private sector banks heavily sold dollars in the latter part of the day amid reports that foreign investments may not be affected in the aftermath of the country's biggest corporate fraud. Leading fund managers reportedly ruled out the possibility of any capital outflow because of the Satyam scandal.

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Despite the dollar's firmness against major world currencies in global markets, they said a sudden bout of dollar sales led a strong recovery in the rupee, which was under pressure in early trade due to weakness in equity markets.

The rupee also drew support from the absence of any dollar demand from oil refiners during the day.

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