The Indian Rupee Faces a Roll Down

On Tuesday, the rupee fell to a level lower by 43 paisa to Rs. 45.40 against the greenback in early trade in constant demand for dollars by banks and importers in view of earnings in dollars abroad amid weak equity markets.

In the interbank currency, the rupiah has resumed in the lowest position 45.38/39 per dollar, a significant deviation compared to the previous close of 44.97/98 per dollar and fell to 45.40 per dollar before quoting 45.21 / 22 per dollar at 1030 hours. In addition, the dollar has reported a better position against the euro in the New York market yesterday.

"Assuming an outstanding bill of $ 5 million to Iran, I think a lot of dollars buying oil-related to come," reported a foreign exchange dealer in a private sector bank. "So the direction of the rupee will be affected by the amount of the purchase of oil dollars to see."

Commenting on the current market, traders said that exporters collect their dollars with the sharp fall in rupee in the past one week. They further argued that there is great support for the rupee near 45.50 unless the action level and drive off the cliff.