Indian Rupee falls on intervention of central bank
Indian Rupee falls on intervention of central bank Indian Rupee fell on Sep. 28, 2007 as Reserve Bank of India bought Dollar despite strong flow of investment in the equity market. In a move to curb rapid upward momentum of Rupee, central bank bought Dollars which in turn aids exporters in the market. Traders continued to take short positions, despite the stock market rallying positively. The BSE Sensex rose 140.54 points, or 0.82%, to settle at 17,291.10, while the broad-based NSE Nifty was up 20.8 points, or 0.42%, to close at 5,021.35. Sentiments of the investors were affected with possible capital outflows, and possible correction in the stock market. Correction implies a reverse movement, usually negative, of at least 10% in a stock index. It is generally temporary price decline, interrupting an uptrend in the market or asset. Indian Rupee closed down at 39.8450/8500 a Dollar, as against clo se of 39.71/72 on the previous working day.
