The Indian rupee fell by 19 paise to Rs. 45.40 per U.S. dollar on Wednesday on renewed demand for the American currency from banks and importers amid strengthening of the dollar in overseas markets and weakness in the domestic equity market.
Forex dealers said strengthening of the dollar against major currencies overseas and a lower opening in the domestic stock market mainly put pressure on the rupee.
At the Interbank Forex Exchange, the rupee resumed lower at 45.28/29 per dollar as against the previous closing level of 45.21/22 per dollar and dropped further to 45.40 at 1030 hours.
The rupee moved in a range between 45.25 and 45.40 per dollar in morning deals.
The dollar rose against its European counterpart today, benefiting from persistent worries about euro-zone debt problems.
Meanwhile, oil was down in Asian trade today due to weaker U.S. energy demand and traders locking in profits from the previous day’s gains, analysts said.
New York’s main contract, light sweet crude for July delivery, lost 57 cents to USD 99.02 a barrel.
The Bombay Stock Exchange benchmark Sensex was down by 68.08 points, or 0.38 per cent, at 1015 hours.
Keywords: currency value