The rupee witnessed its biggest single-day drop of 48 paise in 1-1/2 months to close weaker at 61.14 against the dollar due to heavy capital outflows and demand for the American currency by importers and banks.

Weaker Asian currencies further pushed the rupee lower to its intra-day low of 61.17 per dollar.

After opening weaker by 26 paise at 60.92 per dollar against Friday’sclose of 60.66 on the back of weakness in the domestic equity market and increased demand for US dollar overseas, the domestic unit hovered in the range of 60.92 and 61.17 against the dollar in the afternoon trade.

Fresh dollar demand and a weak domestic equity market as well as decline in industrial production growth to a 4-month low of 0.5 per cent in July had put pressure on the rupee.

BSE-benchmark Sensex ended at 26,816.5 points, lower by 245 points over its previous close on Friday.

Call rates drop; G-Sec yields flat

The interbank call money rate, the rate at which banks borrow short term funds from one another, ended lower at 7.05 per cent from the previous close of 7.95 per cent.

The 8.40 per cent government security maturing in 2024, closed almost flat at Rs 99.30 from Friday’s close of Rs 99.31, while its yield remained unchanged for the second consecutive session at 8.50 per cent.

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