Rupee breaches 50 against dollar (Source: HBL)

Mumbai, Feb. 18 The rupee on Wednesday breached the psychologically crucial level of 50 a dollar in intra-day trade, losing more than a rupee in the last two trading sessions.
Sentiments towards the rupee as well as other emerging market currencies continued to be negative following rumours of a revaluation in the Chinese yuan and weak data from Taiwan and Korea, said a forex dealer with a private bank.
On Wednesday, the rupee opened at 49.75/80, but recovered to 49.58/60, as foreign banks and nationalised banks sold dollars. Thereafter, it again fell and touched the day’s low of 50.06,07. It ended at 49.98, down 18 paise from Tuesday’s close of 49.70.
“There was dollar selling by nationalised banks, perhaps on behalf of the Reserve Bank of India at levels of 49.80 and then at 50.05. But although the RBI is doing its bit to smoothen the rupee, it does not seem very worried, considering that the rupee has earlier seen levels of 50.60,” the dealer said.