01-13-2009, 10:37 PM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Indian Rupee Declines on Speculation Importers Buying Dollars Â
By Anil Varma and Anoop Agrawal
Jan. 13 (Bloomberg) -- Indiaâs rupee declined a second day on speculation some importers bought dollars, betting the local currency will weaken.
The rupee closed at a one-month low as the nationâs benchmark stock index slid a fourth day, adding to concern global funds will dump local equities. Sales of local shares by overseas investors exceeded purchases this year, according to data provided by the Securities and Exchange Board of India.
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The local currency fell 0.6 percent to 49.12 per dollar at the 5 p.m. close in Mumbai, according to data compiled by Bloomberg. That is the lowest since Dec. 8. Sengupta didnât give a forecast.
<b>Overseas investors have sold a net $64.8 million of local stocks this year through Jan. 9. They sold more than $13 billion in 2008, a record</b>.
The rupee strengthened earlier after Infosys Technologies Ltd., the nationâs second-largest computer services provider, said profit in the quarter ended Dec. 31 climbed 33 percent, beating estimates.
<b>The earnings report spurred optimism capital flows from abroad will increase after a corporate fraud at another software maker had dented investor confidence. Satyam Computer Services Ltd. Chairman Ramalinga Raju was arrested last week on charges including forgery, breach of trust and criminal conspiracy</b>.
<b>Non-deliverable forward contracts showed traders increased bets for further weakness in the rupee. Offshore contracts indicate the rupee may trade at 49.33 to the dollar in a month, compared with expectations for 49.20 yesterday.</b>
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By Anil Varma and Anoop Agrawal
Jan. 13 (Bloomberg) -- Indiaâs rupee declined a second day on speculation some importers bought dollars, betting the local currency will weaken.
The rupee closed at a one-month low as the nationâs benchmark stock index slid a fourth day, adding to concern global funds will dump local equities. Sales of local shares by overseas investors exceeded purchases this year, according to data provided by the Securities and Exchange Board of India.
........
The local currency fell 0.6 percent to 49.12 per dollar at the 5 p.m. close in Mumbai, according to data compiled by Bloomberg. That is the lowest since Dec. 8. Sengupta didnât give a forecast.
<b>Overseas investors have sold a net $64.8 million of local stocks this year through Jan. 9. They sold more than $13 billion in 2008, a record</b>.
The rupee strengthened earlier after Infosys Technologies Ltd., the nationâs second-largest computer services provider, said profit in the quarter ended Dec. 31 climbed 33 percent, beating estimates.
<b>The earnings report spurred optimism capital flows from abroad will increase after a corporate fraud at another software maker had dented investor confidence. Satyam Computer Services Ltd. Chairman Ramalinga Raju was arrested last week on charges including forgery, breach of trust and criminal conspiracy</b>.
<b>Non-deliverable forward contracts showed traders increased bets for further weakness in the rupee. Offshore contracts indicate the rupee may trade at 49.33 to the dollar in a month, compared with expectations for 49.20 yesterday.</b>
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