The Domestic Currency reported a major decline to a five year low as it came up to 47.10 against the Dollar. The Rupee slumped to psychologically important 47-mark and was last seen crossing 47 mark in July 2006. With Dollar gaining strength in Global scenario the Indian Currency lost its importance. The impact was evident in the equity market.

The loss was attributed to the importers and oil companies who purchased dollars to meet the month-end demand. Rupee opened weaker this time at 46.82/83 and closed at 46.97/99, against the previous close of 46.54/55.  

On this Mr Dharmakirti Joshi, Director and Principal Economist, Crisil said, “The confidence in the dollar has increased on account of the $700-billion US bailout package.” 

The intervention of the Apex Bank has helped the Indian currency to recover from losses. It is being noticed that RBI has sold up to $1 billion through nationalised Banks. A dealer from a private bank reported that the RBI intervened at 47.10 levels which helped the domestic currency from further dwindling.