Rupee breaches 61 levels for first time since March 21

Business

oi-Sunil

By Sunil Fernandes

Published: Wednesday, April 23, 2014, 11:09 [IST]

The rupee hit a one month low and breached the 61 levels for the first time since March 21, 2014. The rupee was last trading at 61.01, down 25 paise over Tuesday's close.

Today's fall was largely on account of demand from oil importers and a general weakness seen across other currencies against the dollar.

Dollar inflows from foreign funds also seems to have tapered off. In fact, foreign funds have made sizeable purchases in the Indian equity markets on hopes of a Narendra Modi led government being formed.

There is unlikely to be an intervention by the Reserve Bank of India in the currency market as the central bank is likely to be content at the current levels to help exporters. A sharp appreciation in the currency has already taken place in the last few months, which should not help exporters too much. Check currency rates here

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