MUMBAI: The Indian rupee fell to its lowest in nearly a week on continued dollar demand from state-run banks, likely related to the government’s defense purchases.
The fall in the currency comes on the back of Friday’s weakness after the central bank disappointed markets with a hawkish tone at its annual monetary policy, despite delivering a widely expected 25-basis-point rate cut.
Dealers cited continued dollar buying, particularly by a large state-run bank, as the main trigger for the rupee’s fall.
However, dealers are watching out for inflows related to some recent corporate deals which should provide some support for the rupee, particularly Qatar’s $ 1.26 billion investment in Indian telecommunication company Bharti Airtel.
“I expect the rupee to move in a 53.60-54.80 band for now in the absence of any global developments or policy announcements. However, if the global dollar strength persists and 54.80 gets breached, the rupee may see a sharp downside,” said Abhishek Goenka, chief executive at India Forex Advisers.
The partially convertible rupee closed at 54.175/185 per dollar, weaker than its close of 53.935/945 on Friday, its third successive session of falls. It fell to 54.2475 in session, a level last seen on May 1.
The euro was seen struggling against the dollar after surveys showed euro zone private sector activity faltered again in April, suggesting the region may fall deeper into recession this quarter.
In the offshore non-deliverable forward PNDF, the one-month contract was at 54.37 while the three-month was at 54.89.
In the currency futures market INRFUTURES, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed around 54.26 with a total traded volume of $ 4.2 billion.
India rupee falls to near 1-week low
India rupee falls to near 1-week low
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
