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The rupee depreciated 8 paise to 65.25 against the US dollar on increased demand for the US currency from importers and firm foreign fund outflows even as the country’s economy grew to 7.2 per cent in the October-December quarter.
Dealers said the dollar’s strength against other currencies overseas on rising hopes that the Fed would hike interest rates also kept pressure on the domestic unit.
The domestic unit opened weak at 65.25 at the interbank forex market today. It hovered in a range of 65.25 and 65.10 before quoting at 65.18, down 1 paise at 4.50 pm local time.
Meanwhile, the domestic economy recorded a five-quarter high growth of 7.2 per cent in the October-December period on good performance by key sectors like agriculture, construction and manufacturing.
Yesterday, the rupee fell by a steep 30 paise to end at a fresh three-month low of 65.17 against the American currency after Federal Reserve’s hawkish comments reignited interest rate hike fears.
Meanwhile, the Sensex ended lower by 137 points as subdued global cues hurt risk appetite despite better-than-expected Dec-quarter gross domestic product (GDP) data.
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