Rupee drops on strong RBI intervention in forex market
Rupee drops on strong RBI intervention in forex market Indian Rupee dropped on October 1, as central bank intervened in the forex market followed by flat local bourses. Central bank intervened in the forex market by purchasing more Dollars which resulted in Rupee dropping. The local currency was bought, after the local bourses slipped.The BSE Sensex rose 37.52 points, or 0.22%, to settle at 17,328.62, while the broad-based NSE Nifty was up 47.6 points, or 0.95%, to close at 5,068.95. Strong presence of central banks outweighed the sentiments of investors, who are awaiting key data on US monthly payroll. Ripple effects would be foreseen in the global financial market, if the data provides a week performance. It also indicates that the US economy is headed for recession, which may lead to Fed to cut interest rates. This may pressurize Rupee further. However, Dollar gained against the local unit mainly on sust ained intervention and easy norms for outflow of capital for domestic FIIs, corporates, mutual funds, and investors.Indian Rupee ended at 39.85/86 a Dollar, easing from Friday`s finish of 39.8450/8500.
