Rupee dips 36 paise to 1-month low

Rupee dips 36 paise to 1-month low

In step with local stocks, the rupee surrendered initial gains and declined 36 paise to a one-month low of 62.26 against the dollar on Thursday amid demand from importers as the US currency strengthened overseas.

At the interbank foreign exchange market, the rupee started on a stable note from the previous close of 61.90 and climbed to the day’s high of 61.74 as local stocks advanced.

However, the local currency fell sharply to a low of 62.28 after a drop in the domestic equity market amid weak European cues and a decline in manufacturing data in December.

The rupee closed at 62.26, a fall of 36 paise or 0.58 per cent, adding to yesterday’s 10-paise loss. The currency is at the lowest closing level since it reached 62.36 on December 3.

“Negative closing in the local stock markets and strengthening dollar index led to weakness in the rupee. Other than this, a large petrochemical company is said to have bought dollars from the market, which put pressure on the rupee,” CEO of India Forex Advisors, Abhishek Goenka said.

“After a strong opening, the rupee decreased and closed on a weaker note against the dollar, taking cues from negative local equities,” said Pramit Brahmbhatt, CEO of Alpari Financial Services (India).

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