Moving in sync with the equity market, the Indian rupee slipped to the Rs. 45-level against the U.S. dollar after six weeks, shedding 36 paise to Rs. 45.10 in early trade on foreign capital outflows amid persistent dollar demand from importers.
The rupee resumed lower at Rs. 44.90/91 per dollar on the Interbank Foreign Exchange, as against last weekend’s close of Rs. 44.74/75 per dollar, and dropped further to Rs. 45.10 per dollar before quoting at Rs. 45.05/06 per dollar at 10.30 a.m. hours.
The domestic currency moved in a range between Rs. 44.90 and Rs. 45.10 per dollar in early trade.
The continued decline in the equity market mainly affected the rupee value against the dollar, a forex dealer said. The Indian benchmark Sensex dropped further by 518 points, or 3.00 per cent, in early trade on Monday.
The fall in crude oil prices was another factor behind the fall in the rupee value.
Crude prices fell by more than 2 per cent in Asia today, with the sentiment hit by Standard & Poor’s decision last week to cut Washington’s top-notch credit rating for the first time, analysts said.
