Rupee falls six paise to 61.91 against dollar

The rupee fell six paise to 61.91 against the dollar on Monday on month-end demand for the US currency from importers amid a sluggish equity market.

Stocks declined amid profit booking and caution after the Reserve Bank of India said any political instability after next year’s general election would hurt the economy further.

The RBI also said the country is ready for the US Federal Reserve’s tapering and pegged the current account deficit at below 3 per cent for this financial year, according to the central bank’s eighth Financial Stability Report.

The rupee opened lower at 62 a dollar against the previous close of 61.85 at the interbank foreign exchange market and hovered in a range of 61.8850 to 62.16 per dollar before ending at 61.91, a drop of six paise or 0.10 per cent.