The rupee lost 41 paise on Tuesday against the dollar due to a possible hike in interest rates by the U.S. Federal Reserve.
The rupee closed at 63.98 a dollar against its previous close of 63.57 on Monday.
The dollar was ruling strong against most currencies across the world including Euro, Japanese yen, and currencies of emerging markets such as India. “The move is 100 per cent driven by global factors. There are uncertainties around Greece default as Greece has to secure a bailout latest by June 5, 2015,” said Samir Lodha, Managing Director, QuantArt, a foreign exchange advisory firm.
“India’s gold and oil imports are increasing while export is softening,” Mr. Lodha added. In the coming days, according to Mr. Lodha, the rupee was likely to move in the range of 63 to 65 “unless there are global panic signals which I do not see as of now.”
Sensex sheds 112 pointsMeanwhile, equities dipped on bourses as the BSE Sensex closed at 27531.41 with a loss of 112.47 points. It touched a low of 27473.54 intra-day.
A broader 50-share Nifty of the NSE lost 31 points to close at 8339.35.