Rupee again breaches 56 level against US dollar

Mangalore Today / CNN-IBN

Mumbai, May 30: Continuing fall for the third day in a row, the rupee today again fell past the psychological level of Rs 56 against the US dollar in early trade on heavy demand for the American currency from importers amid concerns over euro-zone worries.

Dealers said besides strong month-end demand from importers, particularly oil refiners, the euro’s weakness against the American currency on persistent euro-zone worries, kept pressure on the Indian currency. 

 

 

At the Interbank Foreign Exchange (Forex) market, the domestic unit opened lower at Rs 56 and continued its downward journey to trade at Rs 56.16, down 49 paise against its yesterday’s close of Rs 55.67.

Meanwhile, the BSE benchmark Sensex fell by 113.55 points, or 0.69 per cent, to 16,325.03 in early trade today.


Sensex down 113 pts in early trade on profit-booking, weak Rupee


Mumbai, May 30: The BSE benchmark index Sensex today declined by over 113 points in early trade as funds and retail investors booked profits after two sessions of gains amid weakness in the rupee, breaching Rs 56 level against dollar.  Also, subdued trends on the other Asian bourses also dampened the trading sentiments here. 

 

 

The 30-share index, which had gained over 220 points in the past two sessions, fell by 113.55 points, or 0.69 per cent, to 16,325.03, with stocks of auto, banking and consumer durable sectors succumbing to profit-booking. 

Similarly, the wide-based National Stock Exchange index Nifty shed 32.20 points, or 0.65 per cent, to 4,957.90. 

Brokers said besides profit-booking by speculators after recent gains, weakness in the rupee, which again breached Rs 56 level against the US dollar also cast its shadow on the trading sentiments, triggering selling. 

A weakening trend on the other Asian bourses and tomorrow’s expiry in the derivatives segment also attributed fall in stock prices, they said.

Shares of Tata Motors plunged 8.16 per cent to Rs 253.40 despite company’s Q4 consolidated net profits soared over two-fold to Rs 6,234 crore.

In the Asian region, Hong Kong’s Hang Seng index fell 1.50 per cent, while Japan’s Nikkei Index shed 0.98 per cent in the morning trade.