Rupee trading steady despite weak equities

The rupee was seen trading steady at 53.46 against the dollar, compared to Friday's closing of 53.47. According to marketmen, the RBI has been selling dollars to stem the slide of the rupee.

On Friday too, the rupee recovered sharply from intra day lows and this trend was once again witnessed this morning. At one stage of trade today, the rupee slid to almost 53.73 per dollar.

The dollar has been losing constant ground as trade deficit and the current account deficit continue to widen. Import demand, particularly from crude oil importers has seen a very high demand for the dollar which is weighing down the rupee.

Also, foreign fund flows which have been extremely strong in the last few months, has been slowing down. Foreign inflows which were more than Rs 44,000 crores in the first three months of the calendar year, have turned negative with FIIs outflows of Rs 777 crores in the month of April 2012.

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