* Rupee ends at 60.2250/2350 vs 60.13/14 Thursday close
* RBI seen selling dollars via state-run banks from 60.59
levels - dealers
* Rupee falls for a 9th successive week, down 1.4 pct
By Subhadip Sircar
MUMBAI, July 5 (Reuters) - The Indian rupee fell on Friday
to approach a record low on sustained dollar demand from
importers, forcing the central bank to intervene to support the
currency, according to traders.
The Reserve Bank of India was cited selling dollars via
state-run banks after the rupee fell to the day's low of 60.59,
not far from its life low of 60.76 touched on June 26.
However, the central bank's intervention has not been strong
during the current bout of rupee weakness, with Governor Duvvuri
Subbarao's comments on Thursday about the RBI not targeting any
particular exchange rate also deepening the uncertainty.
In the near-term, investors will closely watch the U.S.
monthly employment data due out later in the day. Analysts
expect U.S. job growth to have slowed in June, but not enough to
shift the Federal Reserve away from expectations that it will
start scaling back its massive monetary stimulus later this
Markets are also awaiting potential measures from the
government to open up more sectors for foreign investment in a
bid to narrow a record high current account deficit that has now
helped send the rupee to a ninth consecutive weekly fall.
"The rupee's outlook is still negative. The government is
not coming up with any strong response. Oil prices are going up,
which may widen the current account deficit," said Subramanian
Sharma, director at Greenback Forex.
The partially convertible rupee closed at
60.225/235, compared with its previous close of 60.13/14.
The rupee fell 1.4 percent for the week and its nine-week
losing streak is the longest since the last one ended June 3,
Analysts feel that the government and central bank will be
forced to unveil new steps if the rupee does not stop its slide.
An overseas bond issue targeted at non-resident Indians is
one of the options the government has, while the central bank
can again open a dollar window for oil refiners to take a big
chunk of dollar demand out of the market.
In the offshore non-deliverable forwards, the
one-month contract was at 60.64, while the three-month was at
In the currency futures market, the most-traded
near-month dollar/rupee contracts on the National Stock
Exchange, the MCX-SX and the United Stock Exchange all closed
around 60.58 with a total traded volume of $5.6 billion.
(Editing by Anand Basu)