Rupee Slumps to Nearly 5-Month Low of 61.41/Dollar
MUMBAI: The Indian rupee fell to a four-and-half month low against the dollar on Wednesday. The partially convertible currency traded at 61.41 per dollar, its lowest since March 14. The reverses in the rupee came on the back of a rising dollar, which hit its highest against a basket of currencies since last September. The US dollar gained tracking positive data in the US economy.
The dollar index was last at 81.544, not far from the overnight peak of 81.626. The euro languished at $1.3367, having plumbed a nine-month trough of $1.3358. Weakness in domestic stock markets also impacted the rupee. The Sensex was down 33 points, while the Nifty fell 0.21 per cent tracking weakness across global markets.
Sentiments have also been impacted because overseas investors seem to be pulling back money from the country. Foreign institutional investors have bought Indian stocks in small quantities this week after selling cash shares worth over Rs 3,000 crore last week. In the debt market, FIIs sold a net of over Rs 2,700 crore on Friday and Monday.
