The rupee slumped to an three-month low of 65.31 due to sustained month-end demand for the American currency from importers, foreign fund outflows and the dollar’s gains against other global currencies. Investors were also cautious ahead of GDP and IIP numbers to be released later in the day.
The domestic unit opened weak by 23 paise at 65.10 at the interbank foreign exchange market today. It hovered in a range of 65.31 and 65.04 before quoting at 65.13, down 26 paise at 4.25 pm local time.
The dollar firmed up against select global currencies as US Federal Reserve Chairman Jerome Powell’s upbeat views on the economy bolstered bets on further Fed interest rate hikes this year.
Yesterday, the local currency had lost by 8 paise to end at 64.87 against the American unit on sustained dollar demand from importers and banks amid heavy capital outflows.
Meanwhile, the Sensex ended lower by 162.35 points or 0.47 per cent at 34,184.04 and the Nifty closed down by 61.45 points or 0.58 per cent at 10,492.85.