Sustained dollar demand from importers pushes rupee down, but higher opening in the domestic equity market and euro’s strength against the U.S. currency caps fall to some extent
The rupee on Friday lost 17 paise to 59.84 against the dollar in early trade at Interbank Foreign Exchange market due to increased demand for the U.S. currency from importers.
Forex dealers attributed rupee’s fall to sustained dollar demand from importers but said that a higher opening in the domestic equity market and euro’s strength against the U.S. currency in global markets capped the fall to some extent.
The rupee had closed 33 paise lower at 59.67 per dollar in Thursday’s trade on U.S. Federal Reserve’s comment on tapering monetary stimulus by this year-end strengthened the dollar.
Meanwhile, the BSE benchmark Sensex rose by 102.20 points, or 0.50 per cent, to 20,230.61 in early trade on Friday.