The Indian rupee today tanked 38 paise to log nearly 7-month closing low of 61.53 against the Greenback following dollar demand from importers and some weakness in stocks ahead of the RBI policy review.
Sustained capital outflows also kept the rupee under pressure while some weakness in dollar overseas, which was trading down by 0.14 per cent against its major global rivals, was not able to stem the rupee fall, a forex dealer said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 61.35 a dollar from previous close of 61.15. It immediately touched a high of 61.31 on initial firmness in local equities.
Later, it fell back sharply to a low of 61.59 before concluding at 61.53, showing a fall of 38 paise or 0.62 per cent. This is its weakest level since March 5, 2014 when it closed at 61.75.
Last Friday, the rupee rose by 19 paise or 0.31 per cent.
In other Asian currencies, the dollar appreciated as well. The Japanese yen headed towards the 110 mark after US data showed the economy expanded at its fastest pace since 2011 during the April-June quarter.
The Indian equity benchmark Sensex on Monday eased by 29.21 points, or 0.11 per cent. FIIs had pulled out USD 39.95 million last Friday as per Sebi data.
Pramit Brahmbhatt, CEO, Veracity Group said: “To start the week, rupee depreciated over half a per cent during the day. It took cues from dollar which is trading strong. Also, the increased month-end dollar demand from oil importers forced rupee to trade low.
“Now all eyes are on the RBI policy review on Tuesday which will show the road ahead for the USD/INR pair. The trading range for the spot rupee is expected to be within 61.00 to 62.00.”
