Rupee down by 20 paise

The rupee on Monday lost 20 paise to close at a fresh two-week low of 53.30/31, ending the first day trading of the new year on a subdued note.

Foreign exchange dealers said sustained dollar demand from importers weighed against the rupee sentiment.

The local currency moved between 53.12 and 53.40 at the Interbank Foreign Exchange (Forex) market before settling the day at 53.30/31, or 0.38 per cent, down 20 paise over the previous close.

Meanwhile, BSE benchmark index Sensex ended up by 63 points at 15.517.92.

Dealers said increased demand for the dollar from importers and concerns over the government’s widening fiscal deficit mainly weighed on the rupee sentiment.

In the year 2011, rupee has crashed by Rs 8.4, or 18.79 per cent.

“Rupee ended weak today on demand for dollars from importers. In global markets where dollar traded lower against the major currencies. Local equities also traded range bound and closed in green,” Alpari Financial Services (India) CEO Pramit Brahmbhatt said.