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BW Businessworld

Rupee Dips For 9th Day On Importers, Asian Peers

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The rupee fell for the ninth session on Thursday, a day after touching a near two-year low, as oil refiners stepped up dollar purchases and as concerns over a possible Greek debt default resurfaced to drag Asian peers lower.

The euro too slipped in Asian trade as initial relief over assurances from Germany and France about keeping Greece in the euro bloc wore off. European Union officials warned the region's finance ministers on Wednesday of systemic crisis risk due to the sovereign debt crisis.

At 10:59 am, the partially convertible rupee was at 47.82/83 per dollar, 0.4 per cent weaker than Wednesday's close of 47.62/63.

The rupee had dipped to a near two-year low of 48.02 on Wednesday but recovered later helped a rebound in the euro.

"Rupee is being hurt by dollar buying related to oil companies and weakness in major Asian currencies. A move to 47.90 can be seen," said a senior foreign exchange dealer with a foreign bank.

Oil is India's biggest import item and domestic oil companies are the biggest purchasers of dollars in the local foreign exchange market.

The local currency may not weaken beyond 47.95 as exporters are likely initiate dollar sales at those level, traders said.

The euro was at $1.3719, lower from its intraday high of $1.3757 and from $1.3724 at end of rupee trade on Wednesday, while the index of the dollar against six major currencies was at 76.982 points from 76.910 previously.

The BSE Sensex erased early gains and was down 0.6 per cent.

The one-month onshore forward premium was at 17.50 points steady from Wednesday, while the three-month was at 46.50 points from 44.75 and the one-year was at 103 points from 104.25.

One-month offshore non-deliverable forward contracts were quoted at 48.05, weaker than the onshore spot rate.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and on the United Stock Exchange were all at 47.9050. The total volume was $2.01 billion.