Today Indian currency Rupee fell to its 2 year low after the credit rating agency S&P downgraded Italy’s credit rating. The dollar jumped significantly after the euro zone debt crisis turned from bad to worse. After Standard & Poor’s cut on Italy’s credit rating the American currency gained against the euro in the early trade.
The Indian currency traded in a range of 48 rupees and 48.25 rupees to a dollar before it quoted rupees 48.08 to a dollar at 10:30 hours. At 10:45 a.m. the partially convertible Indian rupee was at Rs 48.13/14 against a dollar which is 0.7% weaker from yesterday closing of 47.81/82. In early trade in the year 2009 rupee hit a low of Rs 48.24 to a dollar.
The euro was at $1.3617 closer to its 7 month low of 1.3495 which it touched last week while the $ index rose to 77.35 points closure to its 7 months high of 77.78.On the cards we are expecting 48.50 levels if the RBI does not steps in. The RBI last intervened last Wednesday when the rupee touches 48.02. The rupee had hit rupees 48.50 on 15th September 2011
According to a forex dealer a sustained demand for the dollars from the bank and importers affected the rupee value.The 1 month non-deliverable forward contract was quoted at Rs 48.38 weaker from the spot rate. In the currency futures market 1 month near future contracts were trading at Rs. 48.20 in the NSE, the MCX-SX & the United Stock Exchange. The total volume of trade was .99 billion dollarsGoogle+