Rupee falls by 13 paise against US dollar

Fri, May 2 12:01 PM

Mumbai, May 2 (PTI) The rupee continued to weaken further, falling by another 13 paise in morning trade today on heavy dollar buying in non-delivery forwards (NDF) after the greenback surged overseas amid buoyant equity markets. Dealers said the exchange market witnessed good activity with lot of NDF dollar buying after the Federal Reserve cut interest rates by a quarter percentage point, while hinting its reluctance for more cuts.

With a market holiday yesterday, the dollar witnessed brisk activity as it surged against its key rival in overseas markets after better-than-expected US manufacturing data, they added. At the Interbank foreign exchange markets, the local currency resumed steady at 40.

52/53 a dollar from its last close of 40.51/52 a dollar and later dropped sharply to 40.

70 level despite strong equity markets. It was quoted at 40.

64/65 a dollar in late morning trade as exporters sold dollars to cover rupee positions, a leading dealer said. Indian benchmark Sensex jumped by more than 300 points in early trade on the back of strong Asian markets.

PTI.

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