Dollar-Rupee Exchange Rate and Volatility equal opportunity

The current fall in the Indian Rupee against the US Dollar presents investors one of the finest opportunities in decades. The Indian Rupee, unlike the Chinese Yuan, is not beholden to the US economy. The home-grown growth of the Indian economy will drive the rupee higher over the next five years. This will bring the SENSEX higher as well, do not underestimate the buying opportunity in Indian Stocks.

The Indian rupee reached a level nearly 49 mark during the week ended Oct. 17, 2008. Rupee remained depreciated during the week on mixed cues.

At the beginning of the week, the partially convertible Indian rupee appreciated marginally following hefty gains in the local equities, but traders were wary on demand for dollars from importers and oil refiners.

Thereafter, rupee appreciated. However, it trimmed gains in late trade after the stock market came off the day`s high and demand for dollars from oil refiners weighed the sentiment.

In the mid-week, the rupee depreciated on account of heavy losses in the local stock market and pressured by offshore related dollar demand, with central bank intervention helping it to pull back from the day`s low.

Thereafter, rupee depreciated as losses in the local equities caused concerns foreigners would send back more funds, but suspected central bank intervention helped the Indian unit climb off lows.

On the last day of the week i.e. Friday, October 17, the Indian rupee slumped to its lowest close in more than six years on account of losses in local equities intensifying worries of capital outflows. The partially convertible rupee ended at 48.88/89 against USD, its lowest close since June 25, 2002 and a shade weaker than Thursday`s close of 48.82/83.

The Sensex ended with a loss of 606.14 points, or 5.73% at 9,975.35 after touching a high of 10,786.93 and a low of 9,911.32 on Friday, October 17.

Rupee / US Dollar / Forex Currency News, Gold prices India, and The Sensex index on the Bombay Stock Exchange (BSE). Euro / Rupee and Yen / Rupee. Silver Quotes