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The rupee closed in on the psychological 50-level mark as it plunged 65 paise to settle at 49.80/81 against the US currency, the lowest level in the last 28 months, due to heavy dollar demand from importers and some banks amid weak equity markets.
Dealers said heavy dollar demand from importers, mainly oil refiners, and some banks weighed on the rupee.
The BSE benchmark Sensex plunged by 148.45 points, which kept the rupee under pressure right from the onset of the business.
“The rupee closed grossly weak today on fall in equities and dollar buying by oil companies. The Indian Interbank market of USD/INR pair showed vigorous movement,” India Forex Advisors CEO, Mr Abhishek Goenka, said.
“The cracks in the Euro zone, mainly between Germany and France, have surfaced regarding a concrete solution for the European debt crisis, which supported the dollar,” he said.
“Looking at the global scenario one can expect Rupee to trade near 50.00 levels in coming days and the trading range for the USD/INR will be 49.20 to 50.00,” Alpari Financial Services (India) CEO, Mr Pramit Brahmbhatt, said.
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