(RTTNews) - Extending its 3-day losing streak, the Indian rupee moved closer to the 46.0 level versus the US dollar on Friday for the first time since the tail end of January on the back of a free-fall in regional equities and persisting dollar demand from importers.
The Indian market extended its recent sharp losses as a rout in global equities amid concerns about a double-dip recession in the U.S. coupled with fears over the stability of European banks curbed appetite for riskier assets.
A plunge in oil prices, which may help damp domestic inflationary pressures, reports of good monsoon this year thus far and news that the government is considering selling stakes in BHEL and NALCO failed to offer any respite as it is feared there could be further declines before recovery.
The benchmark 30-share Sensex nosedived 482 points in afternoon trading before recouping some of its loss and ending down 328 points or about 2 percent at 16,142. The broader Nifty index fell around 100 points or 2 percent to 4,846.
The rupee has been falling against the US dollar since it reached a fresh multi-month peak of 43.8550 in late July and the domestic unit has appreciated more than 4.5 percent thus far to reach a high of 45.95 today. The 14-day RSI for the USD/INR pair is currently staying in the overbought territory and the pair may reverse its course in near-term.
