Extending its losses for the fourth session, the rupee weakened by 15 paise to a fresh 3-month low of 64.94 against the US dollar ahead of RBI’s minutes for the latest policy meeting due later today.
The domestic unit opened weak by 7 paise at 64.86 at the interbank forex market today. It hovered in a range of 64.94 and 64.70 before quoting at 64.77, up 2 paise at 4.45 pm local time.
According to forex dealers, besides heavy demand for the American currency from importers, persistent outflows by foreign funds and the dollar’s strength against other currencies overseas weighed on the domestic unit.
However, a firm domestic equity market capped the fall. Snapping its three-day losing streak, the Sensex ended higher by over 140 points on value-buying by domestic investors in IT, banking, FMCG and oil and gas stocks amid a firm trend in Asian bourses.
The rupee had yesterday ended lower by 58 paise at 64.79 -- its lowest in three months -- on higher capital outflows. On a net basis, foreign investors withdrew Rs 850.35 crore yesterday, as per provisional data released by the stock exchanges.
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