MUMBAI: The Indian rupee fell for a fourth successive session on Wednesday on growing worries of a government dithering despite mounting fiscal and economic challenges, although a late recovery in the euro helped offset most losses.
A senior oil ministry official told reporters on Wednesday a hike in fuel prices was unlikely before September, denting hopes the government would push for policy reforms in the window between presidential elections last week and the start of parliament's monsoon session in early August.
We are not seeing any concomitant measures by the government. Unless the economy does well, I do not see inflows sustaining, said M. Natarajan, head of treasury at Scotiabank in Mumbai.
The partially convertible rupee closed at 56.16/17 per dollar, as per the SBI closing rate, not far from its close of 56.12/13 on Tuesday.
Three-month offshore non-deliverable forward contracts were trading at 57.23, not far off the record low of 57.32 hit on June 22. The one-month contract was around 56.52.
The spot rupee had earlier fallen to as low of 56.44, its lowest level in nearly a month.
In the currency futures market, the most-traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and United Stock Exchange all closed at around 56.19, with the total traded volume at around $5.8 billion.
A senior oil ministry official told reporters on Wednesday a hike in fuel prices was unlikely before September, denting hopes the government would push for policy reforms in the window between presidential elections last week and the start of parliament's monsoon session in early August.
We are not seeing any concomitant measures by the government. Unless the economy does well, I do not see inflows sustaining, said M. Natarajan, head of treasury at Scotiabank in Mumbai.
The partially convertible rupee closed at 56.16/17 per dollar, as per the SBI closing rate, not far from its close of 56.12/13 on Tuesday.
Three-month offshore non-deliverable forward contracts were trading at 57.23, not far off the record low of 57.32 hit on June 22. The one-month contract was around 56.52.
The spot rupee had earlier fallen to as low of 56.44, its lowest level in nearly a month.
In the currency futures market, the most-traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and United Stock Exchange all closed at around 56.19, with the total traded volume at around $5.8 billion.
No comments:
Post a Comment