Rupee hits five-month low against dollar Friday

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SME Times News Bureau | 08 Aug, 2014
Indian rupee was trading at a five-month low Friday, dropping to 61.70 to a dollar, as foreign funds continued to sell their stocks and fresh concerns emerged over the situation in Iraq.

After plunging to its lowest level since March 5 with a drop of as much as 38 paise over the previous close, the rupee recovered a bit to 61.61 but the sentiments remained weak for the Indian currency, with traders hoping for some intervention by the central bank.

The rupee Thursday had registered one of the steepest gains in the past month.

Meanwhile price of gold again crossed the Rs 29,000-mark to hit over two-month high by rising Rs 300 to Rs 29,100 per ten gram in the national capital on Friday, mostly in tandem with a firming trend overseas as worsening tensions in Iraq fuelled safe-haven demand, reports media.

In addition, rising physical demand in view of festive season and depreciating rupee that slumped to five-month low supported the upside in the precious metal prices.

The rupee was trading lower at Rs 61.38 after dipping to 61.74 (intra-day).

Silver also rose by another Rs 200 to Rs 44,700 per kg on increased offtake by industrial units and coin makers.

Traders said besides festive season demand from jewellers and stockists, a firming global trend where gold advanced to three-week high, as haven demand increased on unrest in the Middle East and tension over Ukraine, buoyed the sentiment.