With the rising price of crude oils, rupee falls by 9 percent to 70.55 percent in early trade at the interbank foreign market on foreign funds outflow. Foreign dealers said that there is a fresh demand from the American currency from importers amid rising in crude oil prices weighed on the domestic unit. After the rise, the rupee opened lower at 70.50 per dollar and dropped further to quote at 70.55, 9 paise over its previous close. On Monday the local unit snapped the four days rising streak and dropped by 88 paise which is the biggest single-day loss in more than three months, to close at 70.46 against the US currency.
According to the report, Crude oil surged over 1.07 percent to USD 62.35 percent per barrel in global markets. As per the report of Monday, traders said that fresh foreign inflows restricted the decline in the local units. The report also said that Foreign Institutional Investors (FIIs) made fresh purchases both Rs. 293.12 crores.
On Tuesday, The BSE benchmark dropped over 100 points in early trade amid mixed cues from other Asian Market, Rising in the price of crude oil, weak rupee and heavy selling by foreign investors.
The 30-share index was trading at 133.27 points or 37 percent lower at 36,107.73 at 9:5 hours opened on a positive note and in a similar movement National Stock Exchange Nifty was trading 31.20 points, or 0.29 percent, down at 10.852.55