Re touches 56-level against dollar after 2 weeks;down 35 paise

The rupee dropped 35 paise to 56 per US dollar after a gap of two weeks on persistent demand for the American currency from banks and importers.

The dollar also gained strength against other currencies in the overseas markets.

The rupee resumed lower at 55.88 a dollar from Tuesday's closing level of 55.65 at the Interbank Foreign Exchange (Forex) Market. It moved between 55.88 and 56.04 in the morning trade, before quoting at 56 at 1040 hrs.

Sustained demand from banks and importers and higher dollar in the New York market mainly affected the rupee value, a forex dealer said.

The US dollar rose yesterday in New York, pushing the euro to its lowest level since July 30 as, dealers said, the US economic data reduced chances of Federal Reserve's easing monetary policy.

Meanwhile, the BSE 30-stock index, Sensex, was trading weak -- down 33 points or 0.19 per cent.

Comments (+)