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The rupee weakened by 28 paise to a three-month low of 65.04 against the US dollar due to increased demand for the greenback from importers amid heavy foreign fund outflows.
According to a forex dealer, the rupee sentiment was also hit as the dollar gained against other currencies overseas after the US Federal Reserve minutes hinted at hiking interest rates faster than expected. Apart from dollar’s strength, increased outflows from domestic capital market also weighed on the domestic currency.
The rupee opened with a sharp gap-down at 65.02 against Wednesday’s close of 64.76 following heavy dollar buying by commercial banks and corporates in an extremely volatile trading at the interbank foreign exchange market.
It fell further to hit a fresh intra-day low of 65.11 in late afternoon deals due to heavy import covering before finally concluding the day at 65.04, showing a sharp loss of 28 paise,
Yesterday, the rupee had claimed some of its lost ground to end 3 paise higher at 64.76 against the US dollar, breaking a two-session losing run.
Meanwhile, the 30-share BSE index Sensex ended lower by 25.36 points or 0.07 per cent at 33,819.50 and the 50-share NSE index Nifty closed down by 14.75 points or 0.14 per cent to 10,382.70.
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