Re falls 58 paise, most in a month

Weak local stocks and sustained dollar demand from importers led the rupee to its biggest fall in a month on Thursday, closing 58 paise lower at 61.83 against the US currency.

Renewed fears of the US Federal Reserve tapering its stimulus programme earlier than expected and a firm dollar overseas also weighed on the rupee, a forex dealer said. Continued capital inflows stemmed the rupee fall, he added.

The rupee resumed sharply lower at 61.60 a dollar from the previous close of 61.25 at the interbank foreign exchange market. It gradually improved to a high of 61.49 before succumbing to late heavy selling in domestic equities and dollar demand to a low of 61.90.

The rupee closed at 61.83, a fall of 58 paise, the most since since November 11, when it tumbled by 77 paise. “It has been a weak session for the rupee amid negative stock markets and fresh demand for dollars from oil companies,” CEO of India Forex Advisors, Abhishek Goenka said.