Rupee drops further

The Indian rupee weakened by 8.50 paise to 39.70/71 against the U.S. dollar, the lowest level since November 29 last year, as demand for the rupee dimmed in view of the consistent weakness in Asian stocks.

It closed at 39.6150/6250 on Friday.

Foreign exchange dealers said the rupee sentiment took a beating on fears of capital outflows amid exporters selling dollar.

A rather disappointing listing of Reliance Power has augmented the fears of a pull-out by foreign institutional investors in the light of sustained slide in Indian stocks, they added.

Earlier, last week also the rupee recorded weakness as the refund from the Reliance Power public issue had strengthened the demand for dollars.

Besides, the dealers added, deferment of a couple of initial public offerings due to persisting weakness in the equity markets weighed on rupee sentiment.

The rupee during the day moved widely between 39.61 and 39.76 — PTI

News Source : Samachar