The rupee weakened by 51 paise to 62.30 against the dollar on the Interbank Foreign Exchange market in early trade on Wednesday after the International Monetary Fund lowered its projection of India’s growth rate.
Strengthening of the US dollar against euro and other currencies in the global market and a lower opening in the domestic equity market mainly put pressure on the rupee, dealers said.
The rupee ended unchanged at 61.79 against the dollar in the previous session on alternate bouts of demand and supply amid surprise steps by the RBI to increase liquidity.
The International Monetary Fund (IMF) on Tuesday lowered its projection of India’s growth rate to 3.75 per cent in 2013 from 5.7 per cent estimated earlier on account of poor demand and weak manufacturing and services sector performance.
Meanwhile, the BSE benchmark Sensex fell by 135.16 points, or 0.67 per cent, at 19,848.45 in early trade on Wednesday.