INSUBCONTINENT EXCLUSIVE:
A strengthening dollar overseas and steady capital outflows dragged the rupee lowerMumbai: The rupee tumbled 43 paise to end at a near
currencies.Foreign institutional investors net sold shares worth Rs 1,841.63 crore Monday, provisional data showed.The Reserve Bank of India
announced on the same day that it would inject liquidity of Rs 36,000 crore into the system through purchase of government bonds in October
to meet the festival season demand for funds.The auctions to purchase government bonds as part of the Open Market Operations (OMO) will be
conducted in the second, third and fourth week of October."Rupee continues to be weak as crude oil prices remains high
Unless we have comfort from crude oil prices, we are likely to see weakness in rupee
It is going to hover in 70-72 range," a senior treasury official said.Brent crude was trading at $82.94 per barrel, up 0.25 per cent."The
central bank's Rs 36,000 crore OMO to provide domestic liquidity could not stem the fall for the rupee
Surging crude oil prices is the main worry for the currency markets."Among the emerging market currencies, rupee was the worst performer
with loss of 42 paise to 72.91 against the Dollar today
Forex traders are awaiting some concrete steps from RBI MPC meeting scheduled on October 5," said V K Sharma, head PCG and capital markets
strategy, HDFC Securities.Equity benchmarks snapped their three-day losing streak Monday as the RBI announced measures to shore up liquidity
amid the government pressing for a change of management at the crisis-hit ILFS.The 30-share BSE Sensex soared 299 points in see-saw trade to
close at 36,526.14, while the NSE Nifty jumped 77.85 points to reclaim the 11,000 mark.
